Hinduja Global Solutions Limited

Partha Desarkar

Executive Director , Mr. Vynsley Fernandes - Whole-time Di-

Srinivas Palakodeti

Global CFO. . As a re-

Rushabh Shah From Adfactors Pr Investor Rela

tions team. Thank you and over to you, Sir.

Partha Desarkar

Executive Director and Group

Vynsley Fernandes

Whole-time Director and Mr. Srinivas Pa-

1.0689 crore

merger of NXTDIGITAL Limited’s (NDL) media busi- ness into HGS was received on November 11, 2022. 1.0689 crore shares were allotted to NDL shareholders on November 25, 2022. New shares allotted are expected

Rs. 41.79 crore

otted are expected to be listed by December 6, 2022. The share cap- ital of HGS has increased from Rs. 41.79 crore to Rs. 52.48 crore as a result of this exercise. The NDL shareholders would own 20.4% of the sh

Rs. 52.48 crore

to be listed by December 6, 2022. The share cap- ital of HGS has increased from Rs. 41.79 crore to Rs. 52.48 crore as a result of this exercise. The NDL shareholders would own 20.4% of the shares of HGS and the

20.4%

m Rs. 41.79 crore to Rs. 52.48 crore as a result of this exercise. The NDL shareholders would own 20.4% of the shares of HGS and the promoters holding in HGS would drop from 67.13% to 66.63% after th

67.13%

reholders would own 20.4% of the shares of HGS and the promoters holding in HGS would drop from 67.13% to 66.63% after this. Another update, on the eagerly awaited buyback plan (which was an-

66.63%

would own 20.4% of the shares of HGS and the promoters holding in HGS would drop from 67.13% to 66.63% after this. Another update, on the eagerly awaited buyback plan (which was an- nounced i

Rs. 1,050 crore

the listing of the shares to NDL shareholders and the amount determined for the buyback is around Rs. 1,050 crore. The reason I'm talking about this in approximate numbers is because this will be done post a com

5 million

f the family now and digital services partners who are delivering digital services to more than 5 million customers. So this is a transformative leap for HGS as a company. What are the strategies and w

rs,

e able to connect the hinterland of India. Tier 2 and Tier 3 cities have huge num- ber of consumers, but they do not really have the digital access that enables them and that is what this aim

4.18 million

th against quarter of last year. If you look the sub- scriber base of video, it has grown to about 4.18 million, but I think the most exciting thing for us has been the continuous push on broadband, where we

1.15 million

n the continuous push on broadband, where we've been able to grow up broadband subscriber base to 1.15 million, making us the 4th largest private ISP in the country today. The 90 day Net Churn, which we belie

1.9%

of a company, we've been able to control it much better than last year, which is reflected in the 1.9% 90 day net churn that we had and the same month renewal again, which is when customers re- new t

“This will be taken up after the completion of the listing of the shares to NDL shareholders and the amount determined for the buyback is around Rs.”

“The reason I'm talking about this in approximate numbers is because this will be done post a complete audit of the combined bal- ance sheets of the company.”

“As you all know that even before the merger, technology and telecom was a large part of our global footprint and our attempt would be to take some of the things that we acquired as a part of this merger to our global clients going forward.”

“So this is something that we believe will be the future for the country and again, as Partha pointed out, the part of the Digital India initiative of how to bring digitalization and digital in- clusion to every single citizen across the country, and one of the key drivers is connectivity and when you use broadband over satellite, there is no constraint on connectivity because irrespective of where you are, a satellite will always reach you.”

“So with this exciting story that Vynsley laid out for us, you will be convinced that the future of HGS is all digital.”

“Now with this integration and with this acquisition, could you assist us with some guidance in terms of business growth and future outlook.”

“So this is the kind of outlook that I will be able to give you.”

“So all I'm saying is you will find it’s difficult to adjust that balance sheet and this balance sheet together right, and there will be some regulations because now NXTDIGITAL digital media business is part of HGS.”

“Clearly we will look for synergies as well as growth in customers or with a better customer experience, that's what we are focusing on as we go through going forward.”

“One of the important things of broadband over satellite is to have a significant national footprint; considering we have a presence in 4500 pin codes and over 40,000 feet on street, there is a sales to supply to service chain already there, so perhaps we hit the ground running and we're looking at leveraging that for growth going forward.”

Moderator

8

Partha DeSarkar

8

Ridham Desai

5

Imran Contractor

3

Jyothi Singh

2

Ritvik Rai

2

Rushabh Shah

1

Preeti Sharma

1

Rushabh Shah

Thank you, Good evening everyone and a warm welcome to the Q2 & H1 FY23 Results Conference Call of Hinduja Global Solutions Limited. We are joined by Mr. Partha DeSarkar - Executive Director and Group CEO, Mr. Vynsley Fernandes - Whole-time Director and Mr. Srinivas Pa- lakodeti - Global CFO to discuss the Q2 & H1 FY23 results and the key developments during the period. Before we begin the conference call, I would like to mention that some of the statements made in today's conference call may be forward look- ing in nature and may involve risks and uncertainties including those related to the future financial and operating performances, benefits and synergies of the company's strategies, future opportunities and growth of the market of the company's services and solutions. I would further like to mention that if there is a call drop during the course of the conference call, please bear with the management. Thank you and over to you, Partha sir.

Partha DeSarkar

Thank you Rushabh and a very good evening to all of you who have taken the time to join us for the call. At the very outset, I would like to invite Vynsley Fernandes who is joining us in the earnings call for the first time, post merger of NXTDIGITAL’s Digital Media business. I will be referring to a presentation which I believe has been uploaded on our website that talks about our earnings call. If you go to slide 3, that lays down the future vision and road map for HGS as a different kind of a company, which is a technology and digital led customer experience transformation company. It talks about a rev- olution over the last two decades from being a pure labor arbitrage provider to somebody who brings in technology and add value. So there are five distinct pillars that would lead our transformation. We would be broadening our journey in the digital marketing piece. We've always been strong in process management and technology. We are bringing in capabilities, data, and analytics, ec

Partha DeSarkar

Thank you. So with this exciting story that Vynsley laid out for us, you will be convinced that the future of HGS is all digital. In slide 14, for the first time in Q2, we are going to report the combined results of HGS’ BPM and digital media businesses. We had a strong solid revenue growth of 25% Y-o-Y, a 34.4% revenue growth in the core BPM busi- ness, while Consolidated net profit was Rs. 238.9 crore, up by 118.1%. We announced the second interim dividend of Rs. 5 per share to our shareholders. The dividend outgo would be to the tune of Rs. 26.2 crore. The BPM business added two new delivery hubs, one in Mysore, India and another one in Belfast, the UK. The digital media business launched its 100th owned and operated NXTHUB, this continues to be the growth driver for broadband digital television and OTT solutions. We move to slide 15 which gives key highlights of financial perfor- mance. Q2 Revenues for the BPM business was Rs. 1,102.9 crore. EBITDA was Rs. 224.7 crore and PBT was R