BPO Hinduja Global Q1 revenue rises but profit halves

MUMBAI: Hinduja Global Services, a business process outsourcing firm, said first-quarter revenue rose nearly 11 per cent year-over-year but margins fell as volumes in some geographies declined and costs rose.

HGS reported revenue of Rs 738.8 crore, up 10.9 per cent from a year ago and 4.5 per cent from the previous quarter.

However, the company’s margin slumped to 7.3 per cent from 9.8 per cent in the fourth quarter, and 11.5 per cent in the same period last year.

The Mumbai-based company reported a profit of Rs 16.2 crore, down more than 50 per cent from the prior year quarter.

“We believe these volume fluctuations are short-term and expect volumes to improve over the rest of the year along with increase in profitability. We have introduced cost containment measures to further strengthen our profitability,” Partha De Sarkar, CEO of Hinduja Global, said in a statement.