Shares of this IT stock under the Hinduja Group jumped nearly 4 percent in Thursday’s trading session after the company’s Board of Directors (BOD) approved plans to monetize its assets for the purpose of retiring the company’s debt obligations.
With a market capitalization of Rs 3,730.93 crores, the stocks of Hinduja Global Solutions Limited opened their trading hour on Thursday at Rs 789.10 and closed the session at Rs 802, gaining approximately 4 percent compared to the previous close of Rs 773.60 apiece.
Such bullish movements in the company’s share price were observed today after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), provided key business updates at its meeting held on 20th March 2024.
Firstly, the company’s Board approved its plan to rationalise the ‘supply chain management’ function of its media division and its subsidiaries to optimise its costs and bring operational efficiencies.
In addition, the plan approved also includes monetization of its ‘Optical Fibre’ assets for a consideration of Rs 208 crores to retire its debt obligations thereby bringing savings in interest costs.
As per the recent presentations, the company reported a double-digit growth in the topline numbers across its segments. Moreover, the company reported a robust improvement in its EBITDA levels and expanded its margins on a YoY basis, i.e., from 11 percent to 16 percent.
The company’s total income composition of Rs 1,295 crores was bifurcated into the BPM business attributing 57 percent, the Digital Services business attributing 36 percent, and the other income contributing the remaining 7 percent of total income.
During the recent financial quarters, the company’s prime business indicators, such as operating revenues as well as after-tax profits, showed movements in opposing directions.
The former, on one end, rose marginally from Rs 1,179.86 crores during Q2FY24 to Rs 1,203.67 crores during Q3FY24, and the latter, keeping the timeframe the same, showed a contrasting effect by dipping from Rs 18.43 crores to Rs 8.18 crores.
Incorporated in 1973, Hinduja Global Solutions Limited is a company based in India that is engaged in ‘Business Process Management’ services. The company offers outsourcing solutions, including contact centers, customized IT services, back office processing, BPO services, and many more.
Written by Amit Madnani
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