STATEMENT OF STANDALONE UNAUDITED RESULTS FOR THE QUARTER AND SIX MONTHS ENDED SEPTEMBER 30, 2015

Transcription

1 Hinduja Global Solutions Limited (CIN: L92199MH1995PLC084610) Regd. Office : 171, Dr. Annie Besant Road, Worli, Mumbai Contact no.: , Fax: Website: investor.relations@teamhgs.com STATEMENT OF STANDALONE UNAUDITED RESULTS FOR THE QUARTER AND SIX MONTHS ENDED SEPTEMBER 30, 2015 PART I (Rs.in Lakhs) Preceding Corresponding Year to date Year to date Previous year 3 months 3 months 3 months ended figures for Current figures for Previous ended S.No. ended ended in the Period ended Period ended previous year (Refer Notes Below) Unaudited Unaudited Unaudited Unaudited Unaudited Audited (i) (ii) (iii) (iv) (v) (vi) 1 Income from operations (a) Net Sales / Income from operations 33, , , , , , Total income from operations (net) 33, , , , , , Expenses a) Employee benefits expense 20, , , , , , b) Depreciation and amortisation expense 1, , , , , , c) Other expenses 6, , , , , , Total expenses 28, , , , , , Profit from Operations before Other Income, finance costs 4, , , , , , and exceptional item 4 Other Income , , , Profit from ordinary activities before finance costs and exceptional item 5, , , , , , Finance costs , Profit from ordinary activities after finance costs but before 4, , , , , , exceptional item 8 Exceptional Item Profit from ordinary activities before tax 4, , , , , , Tax Expense (incl. Deferred Tax) 1, , , , , , Net Profit from ordinary activities after tax 2, , , , , , Extraordinary items Net Profit for the period 2, , , , , , Paid-up Equity Share Capital ( Face Value Rs. 10/- ) 2, , , , , , Reserves excluding Revaluation Reserve as per Balance sheet of , previous accounting year 16 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 and Six months ended September 30, 2015 Preceding Corresponding Year to date Year to date Previous year 3 months 3 months 3 months ended figures for Current figures for Previous ended S.No. ended ended in the Period ended Period ended previous year A PARTICULARS OF SHAREHOLDING 1 Public Shareholding: - Number of shares 6,696,200 6,690,121 6,628,870 6,696,200 6,628,870 6,690,121 - Percentage of Shareholding ( % ) 32.31% 32.29% 32.09% 32.31% 32.09% 32.29% 2 Promoters and Promoter Group Shareholding (a) Pledged/ Encumbered - Number of Shares Nil Nil Nil Nil Nil Nil - 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 14,029,452 14,029,452 14,029,452 14,029,452 14,029,452 14,029,452 - 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) 67.69% 67.71% 67.91% 67.69% 67.91% 67.71% 3 months ended 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 - Notes : 1 The Company is engaged only in Business Process Management and therefore, has only one primary reportable segment in accordance with the Accounting Standard 17 " Segment Reporting". 2 The Board of Directors at their meeting held on November 6, 2015 have declared second interim dividend of Rs. 5 per Equity Share on the face value of Rs. 10 each for FY Other Income includes following: Gain/(Loss) on account of fluctuations in foreign exchange currencies 3 months ended Preceding 3 months ended Corresponding 3 months ended in the previous year Year to date figures for Current Period ended Year to date figures for Previous Period ended Previous year ended (61.67) (40.98) Dividend received from wholly owned subsidiaries ,948.72

2 Hinduja Global Solutions Limited (CIN: L92199MH1995PLC084610) Regd. Office : 171, Dr. Annie Besant Road, Worli, Mumbai Contact no.: , Fax: Website: investor.relations@teamhgs.com STATEMENT OF STANDALONE UNAUDITED RESULTS FOR THE QUARTER AND SIX MONTHS ENDED SEPTEMBER 30, Tax expense for the year ended March 31, 2015 is net of prior year reversal of Rs. 210 lakhs. During the period ended September 30, 2015, the Company issued 3,000 equity shares pursuant to the exercise of stock options by certain employees under the "Employee Stock Option Plan 2008" and 3,079 equity shares pursuant to the exercise of stock options by certain employees under the "Employee Stock Option Plan 2011". 6 Statement of assets and liabilities A EQUITY AND LIABILITIES As at As at Shareholders' funds (a) Share Capital 2, , (b) Reserves and Surplus 81, , Sub-total - Shareholders' funds 83, , Non-current liabilities (a) Long-term borrowings 8, , (b) Deferred tax liabilities (net) (c) Long-term provisions 1, Sub-total - Non-current liabilities 9, , Current liabilities (a) Short-term borrowings 9, , (b) Trade payables 6, , (c) Other current liabilities 16, , (d) Short-term provisions 3, , Sub-total - Current liabilities 35, , B ASSETS TOTAL - EQUITY AND LIABILITIES 129, , Non-current assets (a) Fixed Assets 28, , (b) Non-current investments 43, , (c) Deferred tax assets (net) (d) Long-term loans and advances 14, , (e) Other non-current assets Sub-total - Non-current assets 86, , Current assets (a) Current Investments (b) Trade receivables 23, , (c) Cash and Bank Balances 3, (d) Short-term loans and advances 1, , (e) Other current assets 14, , Sub-total - Current assets 42, , TOTAL - ASSETS 129, , Effective September 1, 2015, the Company has acquired a significant portion of the domestic BPO business from Mphasis Limited and its wholly owned subsidiary Msource India Private Limited for an aggregate consideration of Rs. 1,700 lakhs. In view of this acquisition, the figures of the current quarter are not comparable with the figures of preceding quarter and also with the corresponding quarter of the previous period. The Statutory Auditors have carried out a limited review of the standalone financial results for the quarter ended September 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 November 5, 2015 and then approved by the Board of Directors of the Company at its meeting held on November 6, For Hinduja Global Solutions Limited Place : Mumbai Date : November 6, 2015 Sd/- Anil Harish Director DIN:

3 Hinduja Global Solutions Limited (CIN: L92199MH1995PLC084610) Regd. Office : 171, Dr. Annie Besant Road, Worli, Mumbai Contact no.: , Fax: Website: investor.relations@teamhgs.com STATEMENT OF CONSOLIDATED UNAUDITED RESULTS FOR THE QUARTER AND SIX MONTHS ENDED SEPTEMBER 30, 2015 PART I Preceding Corresponding Year to date Year to date Previous year 3 months 3 months 3 months ended figures for Current figures for Previous ended S.No. ended ended in the Period ended Period ended previous year (Refer Notes Below) Unaudited Unaudited Unaudited Unaudited Unaudited Audited (i) (ii) (iii) (iv) (v) (vi) 1 Income from operations (a) Net Sales / Income from operations 78, , , , , , Total income from operations (net) 78, , , , , , Expenditure a) Employee benefits expense 53, , , , , , b) Depreciation and amortisation expense 3, , , , , , c) Other expenses 17, , , , , , Total expenses 74, , , , , , Profit from Operations before Other Income, finance costs and 4, , , , , , exceptional item 4 Other Income , , , , Profit from ordinary activities before finance costs and exceptional item 5, , , , , , Finance costs 1, , , , Profit from ordinary activities after finance costs but before exceptional item 4, , , , , , Exceptional Item Profit from ordinary Activities before tax 4, , , , , , Tax Expense Provision for Taxation ( incl. Deferred Tax) 1, , , , , MAT Credit Availed Net Profit from ordinary activities after tax 2, , , , , , Extraordinary items Net Profit for the period 2, , , , , , Less : Minority interest Net Profit for the period after minority interest 2, , , , , , Paid-up Equity Share Capital ( Face Value Rs. 10/- ) 2, , , , , , 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.) See accompanying notes to the financial results PART II Select information for the Quarter and Six months ended September 30, 2015 Preceding Corresponding Year to date Year to date Previous year 3 months 3 months 3 months ended figures for Current figures for Previous ended S.No. ended ended in the Period ended Period ended previous year A PARTICULARS OF SHAREHOLDING 1 Public Shareholding: - Number of shares 6,696,200 6,690,121 6,628,870 6,696,200 6,628,870 6,690,121 - Percentage of Shareholding ( % ) 32.31% 32.29% 32.09% 32.31% 32.09% 32.29% 2 Promoters and Promoter Group Shareholding (a) Pledged/ Encumbered - Number of Shares Nil Nil Nil Nil Nil Nil - 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 14,029,452 14,029,452 14,029,452 14,029,452 14,029,452 14,029,452 - 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) 67.69% 67.71% 67.91% 67.69% 67.91% 67.71% 3 months ended 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 - 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". 3 The Board of Directors at their meeting held on November 6, 2015 have declared second interim dividend of Rs. 5 per Equity Share on the face value of Rs. 10 each for FY Other Income includes following: Gain/(Loss) on account of fluctuations in foreign exchange currencies 3 months ended Preceding 3 months ended Corresponding 3 months ended in the previous year Year to date figures for Current Period ended Year to date figures for Previous Period ended Previous year ended (174.28) (92.37) (444.97)

4 Hinduja Global Solutions Limited (CIN: L92199MH1995PLC084610) Regd. Office : 171, Dr. Annie Besant Road, Worli, Mumbai Contact no.: , Fax: Website: investor.relations@teamhgs.com STATEMENT OF CONSOLIDATED UNAUDITED RESULTS FOR THE QUARTER AND SIX MONTHS ENDED SEPTEMBER 30, Standalone Information Preceding Corresponding Year to date Year to date Previous year 3 months 3 months 3 months ended figures for Current figures for Previous ended ended ended in the Period ended Period ended previous year Net Sales / Income from operations 33, , , , , , Profit Before Tax 4, , , , , , Profit After Tax 2, , , , , , Tax expense for the year ended March 31, 2015 is net of credit of Rs. 2, lakhs on account of recognition of deferred tax assets by one of the foreign subsidiary in accordance with relevant provisions of AS 22 - Accounting for Taxes on Income. Further, tax expense for the year ended March 31, 2015 is net of prior year reversal of Rs. 210 lakhs. 7 Statement of assets and liabilities A EQUITY AND LIABILITIES As at As at Shareholders' funds (a) Share Capital 2, , (b) Reserves and Surplus 110, , Sub-total - Shareholders' funds 112, , Minority interest Non-current liabilities (a) Long-term borrowings 59, , (b) Deferred tax liabilities (net) (c) Long-term provisions 1, Sub-total - Non-current liabilities 61, , Current liabilities (a) Short-term borrowings 12, , (b) Trade payables 15, , (c) Other current liabilities 23, , (d) Short-term provisions 5, , Sub-total - Current liabilities 55, , B ASSETS TOTAL - EQUITY AND LIABILITIES 228, , Non-current assets (a) Fixed Assets 55, , (b) Goodwill on consolidation 31, , (c) Non-current investments (d) Deferred tax assets (net) (e) Long-term loans and advances 19, , (f) Other non-current assets Sub-total - Non-current assets 107, , Current assets (a) Current Investments (b) Trade receivables 50, , (c) Cash and Bank Balances 42, , (d) Short-term loans and advances 13, , (e) Other current assets 14, , Sub-total - Current assets 120, , TOTAL - ASSETS 228, , Effective September 1, 2015, the Company has acquired a significant portion of the domestic BPO business from Mphasis Limited and its wholly owned subsidiary Msource India Private Limited for an aggregate consideration of Rs. 1,700 lakhs. In view of this acquisition, the figures of the current quarter are not comparable with the figures of preceding quarter and also with the corresponding quarter of the previous period. In view of the acquisition of Colibrium Partners LLC and Colibrium Direct LLC effective March 27, 2015, the figures of the quarter and six months period ended September 30, 2015 are not comparable with the figures of the corresponding quarter and six months period ended in the previous year. During the period ended September 30, 2015, the Company issued 3,000 equity shares pursuant to the exercise of stock options by certain employees under the "Employee Stock Option Plan 2008" and 3,079 equity shares pursuant to the exercise of stock options by certain employees under the "Employee Stock Option Plan 2011". The Statutory Auditors have carried out a limited review of the consolidated financial results for the quarter ended September 30, 2015 as per Clause 41 of the Listing Agreement with Stock Exchange. Investors can view the standalone results of the Company on the Company's website or the website of BSE ( or NSE ( The above results were reviewed by the Audit Committee at its meeting held on November 5, 2015 and then approved by the Board of Directors of the Company at its meeting held on November 6, For Hinduja Global Solutions Limited Place : Mumbai Date : November 6, 2015 Sd/- Anil Harish Director DIN:

5

6

7 PRESS RELEASE For Immediate Release November 6, 2015 Hinduja Global Solutions Limited Q2 FY2016 Consolidated Performance Highlights Net Sales of Rs. 7,890 million, an increase of 12.4% y-o-y EBITDA of Rs. 807 million at 10.2% margin PAT of Rs. 269 million at 3.4% margin As of September 30, 2015, the Company had Net Debt of Rs. 2,591 million and Net Worth of Rs. 11,222 million The Board declared second interim dividend for FY2016 of Rs. 5 per share Mumbai, India, November 6, 2015: Hinduja Global Solutions Limited (HGS) (Listed on NSE & BSE, India) today announced its Unaudited Second Quarter and Half Year Results for FY2016. Commenting on the results, Mr. Partha DeSarkar, Chief Executive Officer said: HGS has recorded a revenue growth of 12.4% in Q2. In addition, increased capacity utilization and cost control measures initiated has led to significant improvement in EBIDTA margins over Q1. Healthcare continues to be the growth engine for the Company. Further, the Consumer & Public Sector verticals have shown good momentum with 3 new large contract wins in H1. We are seeing traction in our investments in value added solutions such as platform-based tools, digital marketing services, analytics and consulting that are fundamentally changing how we interact with our clients end customers and drive efficiencies. Consolidated Financial Highlights: Q2 y-o-y Q1 q-o-q H1 y-o-y (Rs. Million) FY2016 FY2015 Growth (%) FY2016 Growth (%) FY2016 FY2015 Growth (%) Net Sales 7,890 7, % 7, % 15,278 13, % EBITDA (0.4)% % 1,348 1,575 (14.4)% Margin (%) 10.2% 11.5% 7.3% 8.8% 11.5% Profit Before Tax (PBT) (19.2)% % (31.4)% Margin (%) 5.3% 7.4% 3.4% 4.4% 7.1% Profit After Tax (PAT) (30.0)% % (39.3)% Margin (%) 3.4% 5.5% 2.2% 2.8% 5.2% Basic EPS (Rs.) (30.4)% % (39.6)%

8 PRESS RELEASE Q2 FY2016 Consolidated Financial Highlights: Net Sales increased by 12.4% y-o-y to Rs. 7,890 million. This growth was primarily driven by an improvement in volume across all key geographies, except Canada. EBITDA was Rs. 807 million, down 0.4% y-o-y. EBITDA margins were at 10.2%. EBITDA was impacted due to under performance by HGS Canada. PAT was Rs. 269 million with a margin of 3.4%. Profitability was impacted due to lower operating profit coupled with higher tax incidence. As of September 30, 2015, the Company had Net Debt of Rs. 2,591 million and Net worth of Rs. 11,222 million. Q2 FY2016 Business Highlights: HGS US showcased strong performance and business growth from existing clients and new client wins, Healthcare is the primary growth driver in this market. Colibrium, the acquisition done earlier this year, has signed up 150 FTEs for multiple clients. HGS Canada signed its first Public Sector client. The expected ramp up is 100 FTEs. It also received additional business worth 100 FTEs from a major Canadian Telecommunications company. The business experienced billing efficiencies across all clients. Benefits of all business initiatives expected to accrue in the coming quarters. HGS UK continues to grow on the back of two new large contract wins in the Consumer and Public Sector vertical. The Preston site has been expanded to support this growth. HGS UK remains focused on new business in the government, telecom and consumer goods verticals. HGS Philippines profitability improved driven by stabilization of investments and completion of ramp-up. Outlook is promising primarily due to higher volumes in the healthcare vertical driven by start of Open Enrollment Season. As Open Enrollment Season commences, the India International business is expected to perform well. India Domestic business revenues increased over Q1 on account of ramps in the Telecom sector. COLA (Cost of Living Adjustments) increases in some of the large accounts will benefit margins going forward. The Domestic business started operations for three new clients in E-commerce, Insurance and Healthcare sectors. The acquisition of a significant part of Mphasis Group s BPM business in India concluded this quarter, with the smooth transition of clients and over 8,000 employees. The company signed 7 new logos in the quarter. As Healthcare moves to a B2C model, HGS is investing in solutions to enhance the customer experience. For a leading Healthcare Payer, HGS has implemented multiple automation projects which will yield cost saving in operational costs for the client.

9 PRESS RELEASE The Consulting Business has seen traction with our largest Healthcare Payer client, where the Sales Operations process was re-engineered, with an aim to deliver significant savings. The Company has also invested in HR Analytics to improvise the recruitment methodology. Digital Natural Assist (DNA), a new customer experience platform was launched to streamline customer service communications across all channels. As of September 30, 2015, HGS had 181 active clients (excluding payroll processing clients). As of September 30, 2015, contribution from Healthcare vertical is 41.8%, Telecom & Technology 25.3%, Consumer Electronics 14.8%, BFS 7.0%, Media 2.1%, Chemicals & Biotech 2.3% and 6.7% from other verticals. As of September 30, 2015, total headcount was 39, % in India, 16.4% in Philippines, 6.4% in the US, 6.2% in Canada and 2.5% in Europe. Other Highlights: HGS has signed India s No. 1 and Asia s No. 2 Golfer Anirban Lahiri as its Brand Ambassador. Anirban is also ranked 39 th in the World ranking. He will play a significant role in developing the HGS brand in global markets. Industry Recognitions: During the quarter, HGS received several accolades from various outsourcing research & analysis firms. These are a testament to the Company s leadership position in the BPM industry. HfS Research has named HGS to the Winners Circle in the Healthcare Payer Operations Blueprint, HGS continues to share mindshare with Everest Research: Was named a Major Contender in the CCO PEAK Matrix, 2015 and included in the CCO Service Provider Compendium, HGS has been included in a few recent Frost & Sullivan reports including: o Frost & Sullivan 2015 Europe Contact Center Outsourcing Buyer s Guide: Negotiating a Changing Landscape o BPO Enabling Technology Part II Radically Transforming Client Partnerships, 2015 o 2015 North American Mergers & Acquisitions Update: Contact Center Outsourcing Growth at Warp Speed

10 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 around 40,000 employees in 65 worldwide locations delivering localized solutions. For the year ended 31 st 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 world s most recognized brands. 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 or contact: Srinivas Palakodeti Bijay Sharma Hinduja Global Solutions Limited Churchgate Partners Tel: Tel: pala@teamhgs.com HGS@churchgatepartnersindia.com