Hinduja Global Solutions Limited

Venkatesh Korla

Global Chief Executive

Vynsley Fernandes

Whole-time Director, HGS, and CEO of NXTDIGITAL Media

Mahesh Kumar Nutalapati

Global Chief Financial Officer.

rs,

l now pass the conference to Mr. Darshan Mankad from Adfactors PR. Thank you, and the floor is yours, sir. Darshan Mankad: Thank you. Good evening, everyone. Welcome to Hinduja Global Solutions Limi

Rs. 1,187.3 crore

k Exchange and our website. A quick overview of our Q1 performance. We achieved a total income of Rs. 1,187.3 crores and operating revenue of Rs. 1,056.2 crores in the quarter. EBITDA was Rs. 159.7 crores, with st

Rs. 1,056.2 crore

of our Q1 performance. We achieved a total income of Rs. 1,187.3 crores and operating revenue of Rs. 1,056.2 crores in the quarter. EBITDA was Rs. 159.7 crores, with strong margins of 13.5%, up 169 basis points y

Rs. 159.7 crore

come of Rs. 1,187.3 crores and operating revenue of Rs. 1,056.2 crores in the quarter. EBITDA was Rs. 159.7 crores, with strong margins of 13.5%, up 169 basis points year-over-year. While the numbers show mixed

13.5%

revenue of Rs. 1,056.2 crores in the quarter. EBITDA was Rs. 159.7 crores, with strong margins of 13.5%, up 169 basis points year-over-year. While the numbers show mixed results, they reflect steady pr

169 basis point

Rs. 1,056.2 crores in the quarter. EBITDA was Rs. 159.7 crores, with strong margins of 13.5%, up 169 basis points year-over-year. While the numbers show mixed results, they reflect steady progress for us. We be

55%

derpins our optimism for future growth. The current order pipeline in our Americas region exceeds 55% in the digital services segment. We have more than 1,000 multinational customers in our BPM and

12%

0 BPM clients across North America, reaching approximately 5,000 active users. We have observed a 12% quarter-over-quarter growth in the number of active users of Agent X. We are currently deploying

40%

the UK, Philippines, and Asia-Pacific markets. On average, Agent X users experience approximately 40% training optimization, 25% productivity improvements, and 30% cost reductions, along with an 89%

25%

ia-Pacific markets. On average, Agent X users experience approximately 40% training optimization, 25% productivity improvements, and 30% cost reductions, along with an 89% decrease in employee attrit

30%

nt X users experience approximately 40% training optimization, 25% productivity improvements, and 30% cost reductions, along with an 89% decrease in employee attrition - a significant factor in manag

89%

40% training optimization, 25% productivity improvements, and 30% cost reductions, along with an 89% decrease in employee attrition - a significant factor in managing profitability within our curren

“We expect to observe these effects in the fourth quarter of this year.”

“We plan to allocate some of this increased profitability toward aggressively reskilling our team and developing solutions that will generate future digital services revenue as we transform our organization.”

“The HGS team leadership recently presented a 5-year business transformation plan to the board.”

“In line with this, we aim to be the most trusted partner for clients driving these transformations.”

“Our sector focus will be refined to target banking, financial services, and insurance verticals, as well as retail and consumer products and goods, healthcare, and the UK public sector, where we have a significant presence and will continue to maintain it.”

“We expect revenues from this segment to decline gradually as digital and AI-enabled operations contribute more.”

“We expect to see significant ROI and benefits for both our customers and our own business.”

“Similarly, another story that is circulating and is very close to our heart at the Hinduja Group, especially in the media business, is the plan to bring high-speed, fiber-based broadband to 6 lakh villages in the next three years.”

“We hope to replicate this success in our broadband business over the coming years.”

“We expect to have a plan ready soon and will be launching a proof of concept.”

Vynsley Fernandes

13

Mahesh Kumar

10

Moderator

9

Isaac

8

Venkatesh Korla

6

Nakul Dev

3

Harshal Patil

3

Neha Verma

3

Darshan Mankad

1

Rajiv Bhargava

1

Darshan Mankad

Thank you. Good evening, everyone. Welcome to Hinduja Global Solutions Limited's earnings call for the first quarter ended June 30, 2025. As a reminder, some of the commentary you hear today may contain forward-looking statements. Such statements are based on current expectations and assumptions and are therefore subject to risk and uncertainties. Should a call drop occur, we will ensure it is reconnected as soon as possible. Thank you for your patience. I will now hand over the call to Venkatesh sir for the opening remarks. Over to you, sir.

Venkatesh Korla

Thank you. Good afternoon, everyone. I hope you're all doing well. On behalf of the HGS team, I sincerely thank you for joining us on today's Earnings Call. We truly value your time and ongoing support. Please note that our Earnings Call presentation has been uploaded to the Stock Exchange and our website. A quick overview of our Q1 performance. We achieved a total income of Rs. 1,187.3 crores and operating revenue of Rs. 1,056.2 crores in the quarter. EBITDA was Rs. 159.7 crores, with strong margins of 13.5%, up 169 basis points year-over-year. While the numbers show mixed results, they reflect steady progress for us. We believe this is laying a solid foundation for sustainable growth this year. Our performance this quarter was shaped by ongoing macroeconomic volatility, extended client sales cycles, sector seasonality, and customer ramp-ups. We have consciously decided to prioritize margin expansion over topline growth due to market changes, and this is reflected in our improved EBIT

Vynsley Fernandes

Thank you, Venk, and good afternoon, everyone. I appreciate you joining us this Friday afternoon. Shilpa and others, I assume you can all hear my voice clearly before I continue.

Vynsley Fernandes

Okay, great. Thank you so much. I am on slide 14, which covers the environment and industry, and as usual, I thought I would provide some context about one of the key pillars of the media business, which is our broadband segment. As I mentioned to all of you in recent quarters, our company and organization are increasingly focusing on broadband, a clear sunrise sector for the country with significant growth opportunities. If you recall, in the last investor call, I noted that the current subscriber base of about 40 million in India is expected to more than double in the next 3–5 years. This is reflected on the graphic on the left side of slide 14, where the wired and wireless home internet market is projected to reach $16.5 billion in just five years. That is truly remarkable, and we believe we are right at the beginning of that growth trajectory across India, and as I walk you through it, you'll gain a better understanding. Similarly, another story that is circulating and is very clos

Mahesh Kumar

Thank you. Good afternoon, everyone. I hope you are all doing well. Thank you for taking the time to join us today. Let me walk you through the financial highlights for the quarter. I am moving on to slide number 20. As Venk mentioned earlier, revenue growth was driven by seasonal softness in a few verticals and customer ramp-down. Consequently, on a sequential basis, revenue has decreased to Rs. 1,056 crores in the current quarter from Rs. 1,161 crores in Q4 FY'25. Additionally, as outlined in our segment analysis on our publication page, there is a decline in both our BPM and media businesses on a sequential and year-over-year basis. Nevertheless, our underlying fundamentals remain strong, and we continue to see healthy traction across our service line offerings. In the current quarter, depreciation expenses are Rs. 128 crores compared to Rs. 121 crores in Q4 FY'25. Year-on-year, depreciation has decreased from Rs. 131.2 crores to Rs. 128.3 crores. PBT for the quarter is negative Rs.