Hinduja Global Solutions Q3 Net down 29% at Rs 19.95 crore
New Delhi: BPO firm Hinduja Global Solutions on Tuesday reported a decline of 29 percent in consolidated net profit at Rs 19.95 crore for the quarter ended December 2012, due to payments made for acquisition.
This is against a net profit of Rs 28.16 crore in the October-December quarter of 2011-12, the company said in a statement.
"During the quarter, we made payments for acquisition done in the October-December 2012 period. We also made a one-time provision for an account in UK which led to the decline in net profits" Hinduja Global Solutions CEO Partha DeSarkar said.
HGS's US subsidiary had in September last year inked an asset purchase agreement with Deloitte to purchase its healthcare revenue cycle outsourcing business (EBOS) for an undisclosed amount.
The company's total income from operations grew 13.88 percent to Rs 521.24 crore in the quarter, compared to Rs 457.67 crore it posted for same quarter in financial year 2012.
"We have seen a sharp recovery of volumes across all clients in Canada. Margins have improved through better capacity utilisation globally and initiatives taken on cost management. Our recent wins in healthcare and consumer sector has improved our capacity utilisation," he said.
The Revenue Cycle Management business, HGS acquired in October 2012 is progressing as per plan, he added.
It has contributed approximately USD 2.8 million to HGS's revenue during the quarter.
"We expect global demand to remain stable across our business, particularly in the core verticals of healthcare and telecom. Profitability is likely to improve in the coming quarters as current excess capacity is expected to be filled mainly in the US and Philippines," DeSarkar said.
The company has received all requisite approvals for setting up a SEZ in Hyderabad for servicing the revenue cycle management business. This new delivery facility is expected to be operational by end of February 2013, it said.
HGS added 5 new clients in the quarter, taking the number of active clients to 527 as of December 31, 2012.
The company's total headcount stood at 23,258, of which 62 percent are based in India, 15 percent in Philippines, 9 percent in the US, 9 percent in Canada and remaining 4 percent in Europe.
"There has been across the board hiring. However, as we have downsized our India domestic business there has not been much of an increase in the numbers," he said.
Shares of the company closed at Rs 275.10 apiece on BSE, down 7.45 percent from previous close.