Hinduja Global Solutions (HGS): Sitting on Cash= Market cap

  • Hinduja Global Solutions (HGS): Sitting on Cash= Market cap


  • Healthy financial risk profile with strong capital structure and liquidity: 
    • Financial risk profile will continue to be marked by moderate debt, high networth and low gearing. Gross debt (comprising bank and other borrowings of Rs 1,213 crore, and leases of around Rs 828 crore) remains moderate around Rs 2,000 crore as on December 31, 2024 along with low gearing of ~0.3 time. 
    • However, healthy cash accrual, bolstered by non-operating income and surplus cash and investment balances, should suffice to fund annual capex of Rs 100-140 crore (excluding lease related additions), ensuring lower reliance on additional debt and steady gearing of ~0.30 time over the medium term. 
    • Interest cover, albeit moderated from 9-10 times historically, should be adequate at 3.0-4.0 time (pre-leases) over the medium term.
    • Aggregate surplus funds of Rs 6,365 crore as on December 31, 2024, included cash and bank balances of around Rs 678 crore, and the rest parked as loans, deposits and investments in various Hinduja group entities. 
    • Actual deployment and balance funds post acquisitions, investments in group companies, expansion by NDL and other developments, and ability to recall these funds at short notice, remain key credit monitorables.


Video: https://youtube.com/shorts/PCDfJo1Kwdo?si=JKcEHgBo6z6kBtnZ

Because the market is not perfect, you will sometimes find hidden companies that are trading at beautiful levels

Example: HGS market cap < Cash on balance sheet

This is value hidden that is good reading on how sometimes you get a good deal when you dig in companies

  • Employee Headcount: 
    • 20,683 as of March 31, 2023
    • 19,947 as of June 30, 2023
  • Clientele: 
    • As of March 31, 2023, HGS had 292 active CX/ BPM clients and 762 HRO/Payroll processing clients. 
    • Digital Media business (NXTDIGITAL) has a customer base of more than 5 million
    • Clientele: As of June 30, 2023, HGS had 299 active CX/ BPM clients and 772HRO/Payroll processing clients
  •  As on June 30, 2023
    • Net Cash and Treasury Surplus stood at Rs. 4,962.0 crore
    • Net Profit from continuing operations stood at Rs. 304.6 crore for FY23
    • PAT stood at Rs. 16.6 crore for Q1  
    • EBITDA margins for the quarter was 15.3%
  • In June 2023, we completed the buyback offer of 60 lakh equity shares at a price of Rs. 1,700/share aggregating to Rs 1,020 crore  
  • Delivery Presence: − 
    • As of June 30, 2023, HGS had 35 global delivery centers across nine countries
    • Digital Media business covers 4,655 pin codes covered in India. No. of cities serviced for wired broadband: 351. No. of owned-and-operated NXTHUBs set up across India: 114

 Thank you for contacting Rounaq! Please let us know how we can help you. 

Whatsapp: 7838491131

SEBI registered RA : Rounaq Bakshi
Waheguru

Comments

Post a Comment

Popular posts from this blog

Transcript of NMDC Limited post Q4 & FY 2024-25 Results

Image
Transcript of NMDC Limited post Q4 & FY 2024-25 Results Growth in PAT on an annual or a year-on-year 12-month basis of around 19% and PBT after exceptional item of around 16% Gold operations in Legacy, the first year was have also stabilized Legacy in the last 2 months, 3 months.  And hopefully, in this financial year, Legacy would also be showing good profits IMPORTS India which imports around 55 million, 60 million tons is likely to go up to 150 million to 160 million tons of import for India in terms of coking coal.  Have entered into arrangement with SAIL 60% of total sales as of date is routed through SAIL because send it to their stocking yard.  So based on the user charge, they also market mmdc products 40% still Nmdc market directly in terms of HR coils 2025 year will be much more substantially action packed in terms of NMDC Open new mines within India, coal and iron ore Outside India, we hope to acquire a few mines.  This will be a year where it will be ...
Read more

Looking to park some excess funds for the short term.?

Image
Looking to park some excess funds for the short term.  LiquidBeES by Nippon - has been the default choice for years. But lately, it’s become muscle memory to run everything past ChatGPT.  Just a quick: “Is there a better option than LiquidBeES?” It turns out, there is.  LIQUIDCASE by Zerodha AMC.  Difference was not subtle and decision was easier : - Expense ratio: Less than half of LiquidBeES - Net returns: ~6.2% vs ~5.7% (1-year annualized) - Same safety, same liquidity - AUM already >1/3rd of LiquidBeES in record time This is how discovery is changing. And this is how smart products go viral. Zerodha didn’t try to educate the market.  Discovery is no longer driven by ads or advisors.  It’s driven by habit, trust, and tools like ChatGPT. And when you get it right, traction follows fast. I won’t be surprised if LIQUIDCASE overtakes LiquidBeES in under 18 months. Thank you for contacting Rounaq! Please let us know how we can help you.  About me :...
Read more

𝐖𝐡𝐲 𝐃𝐨 𝐍𝐑𝐈𝐬 𝐈𝐧𝐯𝐞𝐬𝐭 𝐢𝐧 𝐈𝐧𝐝𝐢𝐚?

Image
  𝐖𝐡𝐲 𝐃𝐨 𝐍𝐑𝐈𝐬 𝐈𝐧𝐯𝐞𝐬𝐭 𝐢𝐧 𝐈𝐧𝐝𝐢𝐚? Whether you're living in the US, UAE, UK, or Singapore; India continues to be a hotspot for wealth creation. But why do so many NRIs still invest here? Here’s why 👇 ✅ Higher Returns – Indian equity markets, mutual funds, and even fixed deposits offer attractive long-term returns. ✅ Tax-Free Income – Interest from NRE and FCNR deposits is tax-free in India. Plus, DTAA helps avoid double taxation. ✅ Currency Edge – You invest in INR, and with the right timing, your gains in foreign currency terms could be even higher. ✅ Diversification – Indian assets like gold, real estate, and stocks add balance to a global portfolio. ✅ Future Ready – Planning to return to India someday? Build your base early with property or retirement-focused investments. ✅ Emotional Roots – Beyond numbers, India is still home. 💡 Whether it’s for wealth creation, retirement planning, or building assets back home, India offers a solid mix of growth + stability...
Read more