Hinduja Global Solutions board asks for portfolio review to keep up with changing dynamics

Hinduja Global Solutions (HGS) on Monday said its board has asked for a review of existing portfolio of businesses to unlock value in all divisions of the company.

In a regulatory filing, HGS said keeping in view the changing market dynamics and the opportunities to unlock value in all the divisions, the board of HGS has asked for a review of the company's existing portfolio of businesses.

This will be done in consultation with external consultants if required, it added.

"The board and management of HGS are very conscious of the need to enhance the profitability and value of all business divisions of the company. Accordingly, HGS divested its India domestic business in January 2020," it noted.

This review, the company said, could result in changes in HGS' corporate structure and initiation of mergers, acquisitions and/or divestments where required.

"The outcome of the review exercise shall be placed before the board to determine the next course of action best suited for the interest of the stakeholders," it added.

HGS had registered a 21.7 per cent rise in consolidated net profit at Rs 49.2 crore for the quarter ended June 2020 from Rs 40.4 crore in April-June 2019 quarter. Its revenue from operations grew 1.5 per cent to Rs 1,235.8 crore in the quarter under review as against Rs 1,218 crore in the year-ago period.

The company's revenue growth in the June 2020 quarter was at 8.7 per cent year-on-year on a like-to-like basis, excluding pass-through revenues and India domestic customer relationship management (CRM) business revenues that were included in the first quarter of FY2020.

In November last year, HGS had announced the sale of its India domestic CRM business to Altruist Technologies.