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HINDUJA GLOBAL SOLUTIONS LTDResult Update (CONSOLIDATED BASIS): Q2 FY18

CMP: 659.80 NOV 11th, 2017

Overweight ISIN:INE170I01016

Index Details SYNOPSISHinduja Global Solutions Ltd (HGS) is a leader inoptimizing the customer experience and helpingits clients to become more competitive.

The company achieved a turnover of Rs. 9426.20mn for Q2 FY18 as against Rs. 9052.37 mn in Q2FY17, an increase of 4.13%.

During the quarter, EBIDTA stood at Rs. 1178.40mn as against Rs. 976.87 mn in the correspondingperiod of the previous year, up by 20.63%.

During Q2 FY18, PBT increased by 50.22% toRs. 739.48 mn from Rs. 492.27 mn in thecorresponding period of the previous year.

During the quarter, net profit increased by 42.52%to Rs. 533.37 mn from Rs. 374.24 mn in Q2FY17.

EPS of the company stood at Rs. 25.68 in Q2FY18 against Rs. 18.05 in the correspondingquarter of the previous year.

Gross debt reduction of Rs. 247 mn over Q1FY18 and gross debt reduction of Rs. 1,750 mn inthe last four quarters.

Net Debt as of Q2 FY18 was Rs 656 mn, a NetDebt/TTM EBITDA of 0.15.

At the end of Q2 FY2018, HGS had 187 coreBPM clients and 628 HRO/Payroll processingclients.

The company has opened a new center inBangalore while consolidating two small centersinto one bigger center in Durgapur. Currently,HGS has 69 global delivery centers across sevencountries.

Net sales and PAT of the company are expectedto grow at a CAGR of 8% and 31% over 2016 to2019E, respectively.

Stock DataSector BPO/KPOBSE Code 532859Face Value 10.0052wk. High / Low (Rs.) 691.70/661.00Volume (2wk. Avg.) 21000Market Cap (Rs. in mn.) 13705.37

Annual Estimated Results(A*: Actual / E*: Estimated)Years (Rs. in mn) FY17A FY18E FY19ENet Sales 37109.94 38965.44 42082.67EBITDA 4407.89 4616.43 4995.65Net Profit 1792.07 2029.36 2281.12EPS 86.40 97.70 109.82P/E 7.64 6.75 6.01

Shareholding Pattern (%)

As on Sep 2017 As on June 2016

Promoter 67.54 67.54

Public 32.46 32.46

Others -- --

1 Year Comparative Graph

HINDUJA GLOBAL SOLUTIONS LTD S&P BSE SENSEX

PEER GROUPS CMP MARKET CAP EPS(TTM) P/E (X)(TTM) P/BV(X) DIVIDENDCompany Name (Rs.) Rs. in mn. (Rs.) Ratio Ratio (%)Hinduja Global Solutions Ltd 659.80 13705.37 88.94 5.97 1.02 100.00Allsec Technologies Ltd. 454.55 6926.60 17.23 26.38 4.68 0.00eClerx Services Ltd 1270.05 50647.90 78.28 16.22 4.61 10.00Firstsource Solutions Ltd 38.95 26573.30 2.96 13.16 1.33 0.00


QUARTERLY HIGHLIGHTS (CONSOLIDATED BASIS)

Results update- Q2 FY18,

(Rs. in million) Sep-17 Sep-16 % Change

Revenue 9426.20 9052.37 4.13%

Net Profit 533.37 374.24 42.52%

EPS 25.68 18.05 42.24%

EBIDTA 1178.40 976.87 20.63%

Hinduja Global Solutions Limited has achieved a turnover of Rs. 9426.20 million for the 2nd quarter of the FY 2017-18 as

against Rs. 9052.37 million in the corresponding quarter of the previous year, an increase of 4.13%. During the 2nd

quarter, net profit increased by 42.52% to Rs. 533.37 million from Rs. 374.24 million in the corresponding quarter ending

of previous year. Reported earnings per share of the company stood at Rs. 25.68 in Q2 FY18 as against Rs. 18.05 in the

corresponding quarter of the previous year. Profit before interest, depreciation and tax stood at Rs. 1178.40 million as

against Rs. 976.87 million in the corresponding period of the previous year, up by 20.63%.

Break up of Expenditure

Break up ofExpenditure

Value in Rs. Million

Q2 FY18 Q2 FY17%

Change

Employee BenefitExpenses 6251.40 6066.58 3%

Depreciation &Amortization Expense 353.03 373.70 -6%

Other Expenditure 2128.06 2021.37 5%


Financial Highlights for Q2 FY2018:

Revenue growth in constant currency terms was 6.5%.

Capital expenditure for the quarter was Rs. 433 million, vis-à-vis Rs. 395 million in Q1 FY2018.

Generated 68 % of the Q2 FY2018 EBITDA into Free Cash.

Gross debt reduction of Rs. 247 million over Q1 FY2018 and gross debt reduction of Rs. 1,750 million in the last

four quarters.

Net Debt as of Q2 FY2018 was Rs 656 million, a Net Debt/TTM EBITDA of 0.15.

Financial Highlights for H1 FY2018:

Net Sales increased to Rs. 18,698 million, a YoY revenue growth of 3.1%; in constant currency, growth was 6.4%

YoY.

EBITDA was Rs. 2,040 million; EBITDA margins stood at 10.9%.

Net profit was Rs. 948 million; Net margins stood at 5.1%.

Business Highlights for Q2 FY2018:

Client Wins:

o Signed four new clients across Consumer Products, Transportation and Telecom & Media verticals till

date.

o Expanded engagements with 15 existing clients.

Won two DigiCX deals and two RPA-led contracts.

At the end of Q2 FY2018, HGS had 187 core BPM clients and 628 HRO/Payroll processing clients.

Opened a new center in Bangalore while consolidating two small centers into one bigger center in Durgapur.

Currently, HGS has 69 global delivery centers across seven countries.

Employee Headcount was 45,926 as on 30th September, 2017, a net addition of 1,049 people in Q2.

Latest Updates:

Hinduja Global Solutions Ltd declared Second Interim Dividend of Rs. 2.50 per equity share (25% on the par

value of Rs.10/- per share) for the Financial Year 2017-18.


COMPANY PROFILE

HGS is a leader in optimizing the customer experience and helping its clients to become more competitive. HGS provides

a full suite of business process management (BPM) services from traditional voice contact center services and

transformational DigiCX services that are unifying customer engagement to platform-based, back-office services and

digital marketing solutions. By applying analytics, automation, and interaction expertise to deliver innovation and thought

leadership, HGS increases revenue, improves operating efficiency, and helps retain valuable customers. HGS expertise

spans the telecommunications and media, healthcare, insurance, banking, consumer electronics and technology, retail, and

consumer packaged goods industries, as well as the public sector.

HGS operates on a global landscape with over 45,900 employees in 69 worldwide locations delivering localized solutions.

For the year ended 31st March 2017, HGS had revenues of US$ 555 million. HGS, part of the multi-billion dollar Hinduja

Group, has more than four decades of experience working with some of the world’s most recognized brands.

Awards & Recognition:

Recognised by NASSCOM with the Customer Service Excellence Award 2017 in transformation category.

Stevie Awards for Sales & Customer Service for Contact Center Solutions.

Gold winner of Golden Bridge Awards for Customer Service Team of the Year.

Named in the HfS BPO Top 50 service provider list.

Named in “Everest Group BPS Top 50 list 2017” for third year in a row.

CIO Review recognized HGS in its 20 Most Promising Customer Experience Management Solution Providers 2017.


FINANCIAL HIGHLIGHT (CONSOLIDATED BASIS) (A*- Actual, E* -Estimations & Rs. In Millions)

Balance Sheet as of March 31st, 2016 –2019E

FY16A FY17A FY18E FY19EASSETS1) Non-Current Assets

a) Property, Plant and Equipment 5441.58 5511.13 5345.80 5613.08b) Capital Work in Progress 134.39 315.52 498.52 623.14c) Goodwill 3074.27 2986.44 2896.84 2838.91d) Other Intangible Assets 845.18 994.35 894.92 850.17e) Other Intangible Assets 8.36 2.83 8.07 10.09f) Financial Assets

i) Investments 102.10 53.60 122.20 152.75ii) Other Financial Assets 323.16 396.66 535.49 669.37

g) Deferred Tax Assets (Net) 269.95 648.31 745.56 820.12h) Income Tax Assets (Net) 498.14 382.64 275.50 225.91i) Other Non-Current Assets 1159.93 693.75 735.38 764.79Sub - Total Non- Current Assets 11857.05 11985.22 12058.27 12568.33

2) Current Assetsa) Financial assets

i) Investments-Mutual Funds 0.00 0.00 312.25 324.74ii) Trade Receivables 4587.71 4628.87 6480.42 7776.50iii) Cash and Bank Equivalents 2667.88 3095.71 3962.50 4675.75iv) Bank Balances 1080.23 554.64 27.73 19.97v) Loans 799.49 823.53 848.23 890.64vi) Other Financial Assets 2981.46 3148.20 1574.10 1180.58

b) Other Current Assets 624.87 553.56 636.59 712.99Sub - Total current Assets 12741.64 12804.51 13841.83 15581.17

Total Assets (1+2) 24598.69 24789.73 25900.10 28149.49EQUITY AND LIABILITIES1) EQUITY

a) Equity Share Capital 207.29 207.43 207.72 207.72b) Other Equity 11677.69 13180.13 15209.49 17490.61

Total Equity 11884.98 13387.55 15417.21 17698.332) Minority Interest -5.35 -19.53 -25.54 15.503) Non Current Liabilities

a) Financial Liabilitiesi) Borrowings 5385.15 4263.66 3089.19 2703.98

b) Provisions 149.71 265.15 222.72 200.45c) Deferred Tax Liabilities (Net) 236.05 385.55 316.15 284.54d) Other Non -Current Liabilities 161.38 122.89 119.20 116.82Sub - Total Non Current Liabilities 5932.29 5037.25 3747.27 3305.79

4) Current Liabilitiesa) Financial Liabilities

i) Borrowings 2235.45 1705.80 1262.29 1055.88ii) Trade Payables 1720.27 1605.60 1958.83 2193.89iii)Other Financial Liabilities 1798.19 2001.68 2328.31 2567.89

b) Provisions 461.94 430.13 533.36 629.36c) Current Tax Liabilities 23.57 20.53 88.69 110.87d) Other Current Liabilities 547.34 620.72 589.68 571.99Sub - Total current Liabilities 6786.76 6384.45 6761.16 7129.88

Total Equity and Liabilities (1+2+3+4) 24598.69 24789.73 25900.10 28149.49


Annual Profit & Loss Statement for the period of 2016 to 2019E

Value(Rs.in.mn) FY16A FY17A FY18E FY19E

Description 12m 15m 12m 12mNet Sales 33209.98 37109.94 38965.44 42082.67

Other Income 263.86 227.75 330.23 366.56

Total Income 33473.84 37337.69 39295.67 42449.23

Expenditure -30103.41 -32929.80 -34679.24 -37453.58

Operating Profit 3370.43 4407.89 4616.43 4995.65

Interest -404.29 -429.36 -334.90 -274.62

Gross profit 2966.14 3978.53 4281.53 4721.03

Depreciation -1363.96 -1431.71 -1474.66 -1548.40

Profit Before Tax 1602.18 2546.82 2806.87 3172.64

Tax -598.42 -754.75 -777.50 -891.51

Net Profit 1003.76 1792.07 2029.36 2281.12

Equity capital 207.29 207.43 207.72 207.72

Reserves 11677.69 13180.13 15209.49 17490.61

Face value 10.00 10.00 10.00 10.00

EPS 48.42 86.40 97.70 109.82

Quarterly Profit & Loss Statement for the period of 31st Mar, 2017 to 31st Dec, 2017E

Value(Rs.in.mn) 31-Mar-17 30-Jun-17 30-Sep-17 31-Dec-17E

Description 3m 3m 3m 3mNet sales 9399.91 9271.50 9426.20 9991.77

Other income 25.59 44.40 131.65 107.95

Total Income 9425.50 9315.90 9557.85 10099.72

Expenditure -8378.29 -8278.47 -8379.45 -8882.68

Operating profit 1047.21 1037.43 1178.40 1217.04

Interest -96.99 -91.88 -85.90 -73.01

Gross profit 950.22 945.55 1092.50 1144.03

Depreciation -369.08 -366.90 -353.03 -374.21

Profit Before Tax 581.14 578.65 739.48 769.82

Tax -154.04 -163.80 -206.10 -217.09

Net Profit 427.10 414.85 533.37 552.73

Equity capital 207.31 207.72 207.72 207.72

Face value 10.00 10.00 10.00 10.00

EPS 20.60 19.97 25.68 26.61


Ratio Analysis

Particulars FY16A FY17A FY18E FY19E

EPS (Rs.) 48.42 86.40 97.70 109.82

EBITDA Margin (%) 10.15% 11.88% 11.85% 11.87%

PBT Margin (%) 4.82% 6.86% 7.20% 7.54%

PAT Margin (%) 3.02% 4.83% 5.21% 5.42%

P/E Ratio (x) 13.63 7.64 6.75 6.01

ROE (%) 8.45% 13.39% 13.16% 12.89%

ROCE (%) 10.29% 15.38% 15.89% 16.03%

Debt Equity Ratio 0.64 0.45 0.28 0.21

EV/EBITDA (x) 5.21 3.63 2.98 2.50

Book Value (Rs.) 573.35 645.41 742.21 852.03

P/BV 1.15 1.02 0.89 0.77

Charts


OUTLOOK AND CONCLUSION

At the current market price of Rs. 659.80, the stock P/E ratio is at 6.75 x FY18E and 6.01 x FY19E respectively.

Earning per share (EPS) of the company for the earnings for FY18E and FY19E is seen at Rs. 97.70 and Rs. 109.82

respectively.

Net sales and PAT of the company are expected to grow at a CAGR of 8% and 31% over 2016 to 2019E, respectively.

On the basis of EV/EBITDA, the stock trades at 2.98 x for FY18E and 2.50 for FY19E.

Price to Book Value of the stock is expected to be at 0.89 x and 0.77 x for FY18E and FY19E respectively.

Hence, we say that, we are Overweight in this particular scrip for Medium to Long term investment.

INDUSTRY OVERVIEW

Things can move really quickly in today’s world with the intersection of socio-political trends, technology and business,

and 2016-17 was a testament to this. From Presidential elections, and increasing protectionism (Brexit, calls for Border

Tax and changes in H1-B visa rules in the US, etc) to rising consumerism and technology disruptions, enterprises are

constantly facing big challenges to how they operate and grow. The need to stay relevant amidst increasing competition

and digitization, and the change in end-consumer expectations has meant that enterprises are relooking at traditional

business models. With Business Process Management (BPM) evolving from a cost-based to a value-based proposition, it

is increasingly being seen by enterprises as a key model that can drive transformation, focused on digitization and

customer experiences.

Simultaneously, BPM industry is itself undergoing a revolution led by the digital-technology convergence. From omni-

channel support for enhanced customer experience and real-time analytics to Internet of Things (IoT) and Robotic Process

Automation (RPA) via mobile, chatbots, self-serve etc., the current BPM market is changing at a rapid pace. The


digitization of the world at large is forcing service providers to adopt newer business models, alternate points of delivery

and communication channels.

Analysis of the Global BPM market:

After a couple of years of flattish growth, the global technology market grew at a modest rate of 3.9% to touch $1.2

trillion in 2016. The ongoing need for firms to adapt to the age and preference of the customers is pushing CIOs to invest

in business technologies to ensure stickiness and sustain competitiveness. While IT services saw growth led by

investments in cloud infrastructure and buyers acceptance of the cloud model, the BPM industry grew by 4%, mainly due

to increase in BPaaS (Business Process as a Service) adoption and analytics.

Driven by digital technologies going mainstream, the total addressable market for Global IT-BPM is likely to grow to $4

trillion by 2025, with a CAGR of 3.6%. Over the next 10 years, the industry mix of technologies and demand are likely to

change significantly.

80% of the incremental expenditure is likely to be driven by digital technologies.

50% of the incremental investment is likely to be funded by 20 – 25% reduction in legacy expenditures.

The global BPM spend grew by 4% to reach $183 billion in 2016. The key growth drivers were the increased adoption of

BPaaS across industries and adherences to various newly initiated government compliances.

Review of the Indian BPM market:

The BPM sector in India has grown by over 1.6x in the last five years and crossed $30 billion in FY2017 at a YoY growth

rate of 7.4%. Of the total Indian BPM market, exports contributed 87% while the remaining 13% is from the domestic

business. In terms of verticals, BFSI, healthcare, retail and telecom continue to dominate the industry. India’s share in the

overall BPM sourcing market increased from 35% in 2012 to 37 % in 2016.

NASSCOM has projected that the BPM sector in India is expected to reach $54 billion in revenues by 2025. The journey

towards this goal is expected to revolve around a fundamental shift from ‘being effective’ to ‘becoming strategic’. The

key drivers include focus on analytics-led business insights, extreme automation, business platforms & cloud, and

emergence of alternative pricing and delivery models. With these changes, the industry is also witnessing a gradual shift

in employee and role profiles. Process automation is gaining importance, leading to companies looking at adding

employees based on their skills as opposed to the traditional scalebased addition.

The domestic BPM market saw a growth of 6.9% in FY2017 to touch $3.8 billion. BFSI and telecom, which constitute

two-thirds of the market, have been instrumental in driving demand. Going forward, the Digital India initiative of the

Government and emerging sectors such as eCommerce, consumer durables, automobiles and travel & leisure will drive

growth along with traditional verticals.

With an increasing number of service providers seeking to address the domestic BPM demand, the industry is seeing some

pressure to its billing rates. However, Indian BPM service providers are on the cusp of a significant opportunity as digital

technologies continue to be embedded in an ever-widening range of products and services. To reach out to a new range of


customers, they are focusing on customer experience and delight, migrating the processes to BPaaS (business processas-a-

service offerings), and making analytics an integral part of the delivery model.

Though competition in the domestic telecom sector is intense, introduction of newer technologies, and the rapid adoption

and internet penetration are expected to drive telecom-based BPM growth. With the emergence of payment banks,

digitization initiatives and increasing focus on customer service and satisfaction are driving BPM growth in BSFI sector.

e-governance projects, increasing internet and broadband penetration and various welfare schemes are providing huge

opportunities for BPM services in the Government sector. With domestic passenger traffic expected to see a five-fold

growth in the coming years, the demand for BPM in the travel sector is expected to be higher, particularly for regional

language services.

The non-voice processes are expected to see high growth in the coming years, with Government’s initiatives to digitize

various departmental records projected to lead to a changing mind-set of public sector enterprises towards outsourcing to

third party vendors. While rapid customer base expansion in strategic sectors like telecom, banking, financial services and

insurance, and travel & logistics would lead to growth of voice-based processes, some of this growth could be offset by

the trend towards automation of voice processes, mainly in the telecom sector.

Healthcare:

The healthcare industry landscape in general, and more so in the US, has been subject to often unstructured functioning on

account of several factors like escalating costs, frequent and extensive regulatory changes, changing business models and

the evolution of patient-centric patterns with mobile computing, social media platforms and anytime, anywhere access.

This combination of disruptive and legacy factors has driven healthcare companies to adopt newer technologies while

revamping their existing systems, processes and interfaces.The stakeholders are trying to tackle endemic industry issues

through technology leverage and are trying to evolve the operating model of healthcare in the new normal.

Telecom and Media:

2016 was a transformational year for the telecom and networking industry. In the current year, the demand for data is only

surging, leading to a change in industry landscape, and with it, the underlying networking infrastructure, both from a

physical and virtual perspective.

The consumer-driven data consumption, led by live video streaming and the rise of augmented reality, has dramatically

increased and put tremendous pressure on the networks. It also has been a year of stronger encryption as users,

organizations and law makers alike became increasingly concerned about privacy, safety and security of their data and

infrastructure.

Some of the trends that are likely to shape the industry in the next one-two years are:

2017 is likely to be another vital year for OTT (overthe-top) service growth, fuelled by streaming video on

demand for more non-linear media consumption. The adoption of OTT and the consumption of the same is likely

to put pressure on the infrastructure of the network operators.


Globally many of the telecom service providers have already developed 5G architecture and have commenced

field tests. Hence in the next year, we are likely to see the first wave of commercial offerings being launched.

Across the industry, there are expectations that the speed of data transferred and quantum of data consumed are

likely to see massive surge from the current levels.

In the last year, networks being compromised by breaching of fire-walls, and resultant data breaches, were a

recurring event. This has made network operators and telecom service providers realize that they need to protect

more than just the data being transferred over the systems. New EU legislations are likely to be a significant

driver behind adoption of encryption across networks.

The growth of mobile phones is far outpacing the fixed line connectivity. Most of the growth in subscriber additions is

being seen in the developing world, and amongst the low- to mid-level income populaces. For these strata of the people,

mobile is cheaper, convenient and more useful. With more and more subscribers migrating to mobile, the consumption of

voice and data is only going to increase. With a plethora of schemes for pre-paid and post-paid being introduced at regular

intervals by the mobile operators, subscribers are going to increasingly use the services of BPO/BPM providers for

clarification on pricing and usage.

Consumer:

The perpetual changing trends towards the increased usage of online channels by customers globally, as well as in India,

have given rise to increased investments in technologies by the manufacturers of consumer discretionary and non-

discretionary goods. With the integration of ERP, SCM and CRM, the whole ecosystem of an organization has shrunk and

is more aligned to the near-term demand. The usage of technology integrates multiple application solutions and thereby

improves the customer experience. Some of the crucial areas such as omni-channel integration, analytics, e-Commerce

and mobile applications are expected to open up new growth avenues for the BPM/BPO providers going forward. The

mobile device has become an indispensable part of the customers’ shopping experience. NFC (near field communications)

and QR (quick response) codes are the latest proximity technologies on offer to retailers, providing them with an

opportunity to engage with customers via smart phones.

With the emergence of payment solutions, analysts expect more stores to accept additional/alternative payment types,

most notably electronically enabled Debit/Credit cards and internet and mobile banking. As consumers go through

multiple channels in their process to purchase, retailers will start analyzing online and offline data of consumer behaviour

together to get a more comprehensive picture of customers’ shopping patterns. Retailers are also gradually switching to

single view retail management systems, as gaining visibility of sales, inventory and customer across different channels,

allows them to execute their Omni-channel initiatives and strategies effectively. It is highly probable that this strategy is

going to be implemented by large number of retailers going forward. Omni-channel is likely to drive more retailers to

adopt cloud based apps as these solutions enable them to scale quickly, get real-time insights of their business and more

importantly work from any location.


Banking and Financial Services:

It is an era of mass customization. As customers are becoming more connected through social media, they are also

becoming more demanding and less loyal. Easier comparison of financial products, and its pricing and faster switching

between the schemes mean that relationships can be brief and largely transactional. Demographic trends have strong

implications for conventional financial services companies because the youngest users are the least loyal. Customers have

experienced first-hand that digital commerce delivers speed and personalization, and this raises their expectation from

financial services and its various products.

Instead of a mortgage, insurance policy or investment plan that broadly meets their needs, buyers want customized,

adaptive solutions that evolve and deliver specified outcomes. For example, target-date funds automatically adjust the

asset mix to a user’s expected retirement age. Personalized service and tailored solutions were once the reserve of high net

worth clients. Now, technology is opening it up to mass affluent consumers, and beyond. In the insurance industry,

advances in processing capacity, customer profiling and risk analytics are now opening the way for a new generation of

‘smart’ policies. While being as affordable and easy to understand as today’s off-the shelf products, these policies could

be both fully customized to individuals and able to adapt to their changing needs. Crucially, the technological

developments that are making this new generation of policies possible would also making it easier for new entrants to

break into the market at relatively little cost.

Mobile banking is growing fast and the number of mobile banking users are likely to double from the current levels by

2020. This means about 40% of the world adult population would be using mobile banking.

Public/Government:

The public sector is moving towards providing more customer friendly and interactive services. BPO/BPM service

providers can help manage the big data, which resides in the servers of the government departments and government-

owned organizations. BPO/BPM service providers can assist the government agencies to optimize traditional approaches,

thereby eliminate mistakes and reduce the workload. Through the implementation of focused social media strategies, the

BPM platform can allow for a swift and seamless integration of relevant social media data into conventional processes in

the coming years. In line with growing expectations, a recent survey in many countries shows that citizens are now

expecting their governments to better understand the needs of the citizens, societies and communities, and make sure that

services are structured and tailored to the needs of people who are using them. In order to fulfil the personalization of the

services, governments and public sector organizations need to invest in technologies and innovations to improve processes

and outcomes. This requires a transition from large-scale, standardized solutions to develop more intelligent, interactive

solutions that focus on individual needs.

Another trend experienced in the vertical is the increasing inclination of governments towards using outsourcing as a way

of accessing external expertise and delivering services more cost-effectively. Public sector is also keen to ensure

affordability and continued delivery services for its citizens. Demographic ageing, increased citizen demands for


personalized services and growing sustainability challenges are likely to create a major challenge for governments to meet

expenditure gaps.


Disclosure Section

The information and opinions in Firstcall Research was prepared by our analysts and it does not constitute an offer orsolicitation for the purchase or sale of any financial instrument including any companies scrips or this is not an officialconfirmation of any transaction. The information contained herein is from publicly available secondary sources and dataor other secondary sources believed to be reliable but we do not represent that it is accurate or complete and it should notbe relied on as such. Firstcall Research or any of its affiliates shall not be in any way responsible for any loss or damagethat may arise to any person from any inadvertent error in the information contained in this report. Firstcall Research and/or its affiliates and/or employees will not be liable for the recipients’ investment decision based on this document.

Analyst Certification

The following analysts hereby state that their views about the companies and sectors are on best effort basis to the best oftheir knowledge. Unless otherwise stated, the individuals listed on the cover page of this report are research analysts. Theanalyst qualifications, sectors covered and their exposure if any are tabulated hereunder:

Name of the Analyst Qualifications SectorsCovered

Exposure/Interest tocompany/sector UnderCoverage in the CurrentReport

Dr.C.V.S.L. Kameswari M.Sc, PGDCA,M.B.A,Ph.D (Finance)

Pharma &Diversified

No Interest/ Exposure

U. Janaki Rao M.B.A CapitalGoods


B. Anil Kumar M.B.A Auto, IT &FMCG


M. Vijay M.B.A Diversified No Interest/ ExposureV. Harini Priya M.B.A Diversified No Interest/ ExposureMD. Naveed M.B.A Diversified No Interest/ ExposureA. Bhikshapathi M.B.A Diversified No Interest/ Exposure

Important Disclosures on Subject Companies

In the next 3 months, neither Firstcall Research nor the Entity expects to receive or intends to seek compensation for anyservices from the company under the current analytical research coverage. Within the last 12 months, Firstcall Researchhas not received any compensation for its products and services from the company under the current coverage. Within thelast 12 months, Firstcall Research has not provided or is providing any services to, or has any client relationship with, thecompany under current research coverage.

Within the last 12 months, Firstcall Research has neither provided or is providing any services to and/or in the past has notentered into an agreement to provide services or does not have a client relationship with the company under the researchcoverage.

Certain disclosures listed above are also for compliance with applicable regulations in various jurisdictions. FirstcallResearch does not assign ratings of Buy, Hold or Sell to the stocks we cover. Overweight, Equal-weight, No-Weight andUnderweight are not the equivalent of buy, hold and sell. Investors should carefully read the definitions of all weightsused in Firstcall Research. In addition, since Firstcall Research contains more complete information concerning theanalyst's views, investors should carefully read Firstcall Research, in its entirety, and not infer the contents from theweightages assigned alone. In any case, weightages (or research) should not be used or relied upon as investment advice.


An investor's decision to buy or sell should depend on individual circumstances (such as the investor's own discretion, hisability of understanding the dynamics, existing holdings) and other considerations.

Analyst Stock Weights

Overweight (O): The stock's total return is expected to exceed the average total return of the analyst's industry (orindustry team's) coverage universe, on a risk-adjusted basis, over the next 12-18 months.

Equal-weight (E): The stock's total return is expected to be in line with the average total return of the analyst's industry(or industry team's) coverage universe, on a risk-adjusted basis, over the next 12-18 months.

No-weight (NR): Currently the analyst does not have adequate conviction about the stock's total return relative to theaverage total return of the analyst's industry (or industry team's) coverage universe, on a risk-adjusted basis, over the next12-18 months.

Underweight (U): The stock's total return is expected to be below the average total return of the analyst's industry (orindustry team's) coverage universe, on a risk-adjusted basis, over the next 12-18 months.

Unless otherwise specified, the weights included in Firstcall Research does not indicate any price targets. The statisticalsummaries of Firstcall Research will only indicate the direction of the industry perception of the analyst and theinterpretations of analysts should be seen as statistical summaries of financial data of the companies with perceivedindustry direction in terms of weights.

Firstcall Research may not be distributed to the public media or quoted or used by the public media without the expresswritten consent of Firstcall Research. The reports of Firstcall Research are for Information purposes only and is not to beconstrued as a recommendation or a solicitation to trade in any securities/instruments. Firstcall Research is not abrokerage and does not execute transactions for clients in the securities/instruments.

Firstcall Research - Overall StatementS.No Particulars Remarks1 Comments on general trends in the securities market Full Compliance in Place2 Discussion is broad based and also broad based indices Full Compliance in Place3 Commentaries on economic, political or market conditions Full Compliance in Place4

Periodic reports or other communications not for public appearanceFull Compliance in Place

5 The reports are statistical summaries of financial data of the companies as and whereapplicable

Full Compliance in Place

6 Analysis relating to the sector concerned Full Compliance in Place7 No material is for public appearance Full Compliance in Place8 We are no intermediaries for anyone and neither our entity nor our analysts have any

interests in the reportsFull Compliance in Place

9 Our reports are password protected and contain all the required applicable disclosures Full Compliance in Place

10 Analysts as per the policy of the company are not entitled to take positions either fortrading or long term in the analytical view that they form as a part of their work


11 No conflict of interest and analysts are expected to maintain strict adherence to thecompany rules and regulations.


12As a matter of policy no analyst will be allowed to do personal trading or deal andeven if they do so they have to disclose the same to the company and take priorapproval of the company



13Our entity or any analyst shall not provide any promise or assurance of any favorableoutcome based on their reports on industry, company or sector or group


14 Researchers maintain arms length/ Chinese wall distance from other employees of theentity


15No analyst will be allowed to cover or do any research where he has financial interest


16 Our entity does not do any reports upon receiving any compensation from anycompany


Firstcall Research Provides

Industry Research on all the Sectors and Equity Research on Major Companiesforming part of Listed and Unlisted Segments

For Further Details Contact:Mobile No: 09959010555

E-mail: [email protected]@firstcallresearch.comwww.firstcallresearch.com

th HINDUJA GLOBAL SOLUTIONS LTD...Document code: FOTL_111120172_2 Copyright © 2016 Firstobject...

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Transcript of th HINDUJA GLOBAL SOLUTIONS LTD...Document code: FOTL_111120172_2 Copyright © 2016 Firstobject...