Hinduja Global Sol Q3 profit more than doubles to Rs 54.1cr
Feb 11 2014 , New Delhi
The company had posted a net profit of Rs 20 crore in the year-ago period, it said in a statement.
The growth in net profit was also helped by lower interest expense as a result of debt repayment and better working capital management, Hinduja Global Solutions CEO Partha De Sarkar told PTI.
"The net profit includes benefits of lower tax expense due to recognition of MAT credit of Rs 11.26 crore," he added.
Net sales rose by 26 per cent to Rs 656.9 crore in the October-December quarter this fiscal from Rs 521.2 crore in the year-ago period.
"Our performance is driven by strong growth of 26 per cent in volume. We are seeing a strong demand pipeline in verticals like healthcare and telecom in geographies like Canada, the Philippines and India," Sarkar said.
Currency impact for the company was about 11 per cent, he added.
"Our margins have improved significantly due to better utilisation. We have started two new centres in Alabang, the Philippines, one in Princeton, New Jersey and expanded the Bangalore centre to service the healthcare sector, adding about 1,050 seats," he said adding that the company is now focused on strengthening business from the Middle East region during FY2015.
Sarkar said the demand from the US and Canada region was strong and Europe, which was showing muted performance, is showing early signs of recovery.
"Our strong sales pipeline and emphasis on new lines of services are expected to drive future growth," he added.
The company's board has declared second interim dividend of Rs 5 per share for FY14.
As of December 31, 2013, the company had 135 active clients (excluding payroll processing clients). Its total headcount was 25,676, of which 59 per cent were based in India, 17 per cent in the Philippines, 10 per cent in the US, 11 per cent in Canada and the remaining 3 per cent in Europe.
As of December 31, 2013, the company had net debt of Rs 62.1 crore.
Shares of the company closed at Rs 611 apiece, up 5.78 per cent on the BSE.