Hinduja Global Solutions Reports Mixed Financial Results for Q1 FY25

Hinduja Global Solutions, a smallcap BPO/ITeS company, recently announced its financial results for the quarter ending June 2024. The company’s stock has been given a ‘Strong Sell’ call by MarketsMOJO.

According to the financials, Hinduja Global has shown a flat performance in the quarter, with a score of -1, which is an improvement from the previous quarter’s score of -14. However, there are some positive aspects to the company’s financials.

The company’s Profit After Tax (PAT) for the quarter has seen a significant growth of 431.1% compared to the average PAT of the previous four quarters. This shows a positive trend in the near term. Additionally, the company’s Inventory Turnover Ratio has been consistently increasing in the last five half yearly periods, indicating that the company is able to sell its inventory at a faster rate.

Hinduja Global’s Earnings per Share (EPS) for the quarter is also at its highest in the last five quarters, showing an increase in profitability and creating higher earnings for shareholders.

However, there are some areas of concern in the financials. The company’s Profit Before Tax less Other Income (PBT) for the quarter has fallen by -36.5% compared to the average PBT of the previous four quarters. This shows a negative trend in the near term. The company’s interest cost has also increased, indicating higher 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 Debt-Equity Ratio for the half yearly period is also at its highest in the last five periods, indicating that the company is borrowing more to fund its operations.

Moreover, the company’s Non Operating Income, which is 384.23% of its PBT, is a cause for concern as it shows a high income from non-business activities, which may not be sustainable in the long run.

Overall, Hinduja Global Solutions has shown a mixed performance in the quarter, with some positive and negative aspects. Investors should carefully consider these factors before making any investment decisions.