HGS eyes bigger healthcare pie

Hinduja group-controlled Hinduja Global Solutions (HGS) is eyeing a bigger contribution from the healthcare vertical to its revenues, going forward.

“We have been able to improve our revenue contribution from the healthcare vertical. It is close to 43% currently, and we are hoping to push that to 46% in the coming year,” HGS Chief Executive Officer Partha DeSarkar told Deccan Herald.

“We are also focussing a lot on offshore across India, the Philippines, and nearshore Jamaica. Our offshore revenues are the same as healthcare (42% of revenues today), and we want to grow that to 46%.”

The company would continue hiring and investing in adding new capacity. “We will be adding around 3,000 people in FY17 and about 1,500-2,000 seats. It would be mostly offshore, equally split between India and the Philippines, and a fraction of that in Jamaica,” DeSarkar said.

The capex for the capacity addition would be around Rs 160-180 crore, and would be funded through internal accruals, DeSarkar added. The company had incurred a higher capex of around Rs 230 crore last year, as it added quite a few centres and built a new corporate office. The cash-in-hand currently for the company is around Rs 270 crore. During FY2016, the company opened six new centers.

Meanwhile, HGS has reported a 138.4% increase in net profit for the fourth quarter ended March 31, 2016, at Rs 40.8 crore, compared with Rs 17.1 crore in the third quarter of the current fiscal.