Hinduja Global Solutions' Q4 financial results show mixed performance, with some positive and negative trends.

May 31 2024 09:15 PM IST
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Hinduja Global Solutions, a BPO/ITeS company, reported a flat performance in the quarter ending March 2024, with a score of -2. However, the company's PAT and EPS have shown positive growth, while PBT and interest cost have decreased. Non-operating income is high, indicating potential sustainability issues. Investors should carefully analyze before investing.

Hinduja Global Solutions, a smallcap company in the BPO/ITeS industry, recently declared its financial results for the quarter ending March 2024. The company's stock has been given a 'Strong Sell' call by MarketsMOJO.

According to the financials, Hinduja Global has seen a flat performance in the quarter, with a score of -2, which has improved from -14 in the last 3 months. However, there are some positive aspects to the company's performance. The Profit After Tax (PAT) for the quarter was at Rs 90.48 crore, showing a growth of 431.1% compared to the average PAT of the previous four quarters. This indicates a very positive trend in the near term. The company's PAT for the quarter was also the highest in the last five quarters, showing a positive trend.

Another positive aspect is the Earnings per Share (EPS) for the quarter, which was at its highest in the last five quarters at Rs 19.45. This shows that the company has been able to increase profitability and create higher earnings for its shareholders.

However, there are some areas of concern for Hinduja Global. The Profit Before Tax less Other Income (PBT) for the quarter was at Rs -117.73 crore, showing a decrease of -36.5% compared to the average PBT of the previous four quarters. This indicates a very negative trend in the near term. The company's interest cost has also increased by 44.01% in the preceding nine months period, which could signify increased borrowings. The company's ability to manage interest payments has also deteriorated, with the Operating Profit to Interest ratio being at its lowest in the last five quarters.

The PBT for the quarter was also the lowest in the last five quarters, showing a negative trend. Additionally, the company's non-operating income, which is 384.23% of the PBT, is quite high. This could indicate that the company's income from non-business activities is not sustainable. The non-operating income for the quarter was also the highest in the last five quarters.

Overall, while Hinduja Global Solutions has shown some positive aspects in its financial performance, there are also some areas of concern that investors should keep in mind. It is important to carefully analyze the company's financials and make informed decisions before investing in its stock.
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