HGS Reports Rs 8.59 Cr Loss in Q3 FY25

New Delhi, Feb 14 (PTI) Business process management firm Hinduja Global Solutions (HGS) on Friday reported a consolidated loss of Rs 8.59 crore in the December quarter of FY25.

It had posted a consolidated profit of Rs 8.18 crore in the year-ago period, according to a regulatory filing.

Revenue from operations tanked 11.6 per cent to Rs 1,064 crore in Q3 FY24, compared to Rs 1,204 crore in the corresponding quarter of the previous fiscal.

In the July-September quarter, the company suffered a loss of Rs 50.5 crore while its revenues stood at Rs 1,087 crore.

The company's employee count stood at 18,169 at the end of the quarter.

In January 2025, the company launched a new technology services delivery centre in Bengaluru.

Decision-making and signing of new contracts has been slow for most of FY25, HGS Group CEO and whole-time director Partha DeSarkar said, adding that the company expects contract awards and signings to gather pace during FY2026.

"While the increase in offshoring is expected to improve margins in the future, revenue growth may appear muted due to change in billing rates," he said.

In view of the growing demand for South Africa-based delivery from clients in the US and UK, HGS is "more than doubling" its delivery capability in South Africa over the next few months, DeSarkar said.

Head of digital media business Vynsley Fernandes said revenue contribution from the high ARPU (average revenue per user) enterprise segment continued to account for 10 per cent of the company's top-line for the nine months of FY25.

"On the retail front, the renewed drive of our integrated product offering of broadband plus digital TV is helping push up ARPUs whilst reducing churn across both segments of DTV and broadband," Fernandes said.

Shares of HGS settled 4.74 per cent higher at Rs 595 apiece on the BSE.