HGS Shares Jump 20% To 52-Week High On Reporting Strong Q3 Results

Shares of Hinduja Global Solutions jumped 20 percent on Monday to its 52-week high of Rs 857.75 apiece.

On Friday night, the business process management company posted a strong 93.7 percent increase in consolidated net profit at Rs 71.1 crore for the December-ended quarter from Rs 36.7 crore in the same period of the previous year.

The company's revenue from operations rose by 5 percent on a year-on-year basis to Rs 1,335.7 crore against Rs 1,272.6 in December 2018.

Speaking of the strong results, CEO Partha DeSarkar said, "The growth was led by demand in both Healthcare and CES (Consumer Engagement Services) verticals across geographies. While CES had ramp ups from recent client wins and the festive season, the Healthcare business saw strong growth driven by a strong Open Enrollment season across US, Jamaica, Philippines and India."

HGS added eight new clients across healthcare, BFSI and media & technology for core BPM services and six for HRO/ Payroll Processing in the December quarter. It also expanded engagements with 16 existing clients and won contracts from 10 clients (new and existing) for RPA, digital, analytics and Social Care services.

HGS Ltd also declared a dividend of Rs 15 per share on Friday.

"The Board of Directors have declared Interim Dividend of Rs.15 per share (150% on the par value of Rs.10/- per share) for the Financial Year 2019-20 and fixed February 24, 2020 as the record date for payment of this Interim dividend. The said Dividend will be paid to the eligible shareholders on March 04, 2020," the company's stock exchange filing said.