Hinduja Global Solutions Q3 net declines 68%; shares down nearly 13% intraday

Hinduja Global Solutions, the BPO arm of diversified Hinduja Group, on Wednesday, reported 67.57% decline in consolidated net profit to Rs 17.11 crore for the December quarter. The firm had posted a net profit of Rs 52.76 crore in the year-ago period.

The consolidated net sales, however, grew by 20.53% to Rs 882.91 crore in the quarter under review from Rs 732.52 crore in the same period a year ago, the company said in a BSE filing.

At 1332 hours, the shares of Hinduja Global Solutions were trading down 12.76% or Rs 58.20 at Rs 397.90 per scrip intraday on the BSE. 

"Profitability was lower in the quarter due to increased investments in ramp ups and exit costs related to unprofitable clients... we won seven new logos and added new lines of business from existing clients in the third quarter (Q3)," said Partha DeSarkar Chief Executive Officer Hinduja Global Solutions.

The company said sales "growth was primarily driven by an improvement in volume across all key geographies coupled with contribution from recently acquired Business Process Management (BPM) business in India."

In a separate filing, Hinduja Global Solutions said its board of directors has declared the third interim dividend of Rs 3.75 per share for the financial year 2015-16.

As of December 31, the company had 188 active clients (excluding payroll processing clients) and its total headcount was 38,747, of which 66.5% were based in India, 16.4% in Philippines, 7.5% in the US, 6.1% in Canada and the remaining 3.5% in Europe.