HOV Services, Ltd. (NSE: HOVS), among India's top tier BPO companies, reported its consolidated financial results for the third fiscal quarter ended December 31, 2008.
Total Income for the third quarter has increased 3.9% to Rs 2,358.6 million from Rs 2,269.9 million over the second quarter FY 2008-09. EBITDA increased by 1.0% for the third quarter to Rs 316.0 million from Rs 312.9 million over the second quarter FY 2008-09.Net Profit decreased by 14.1% to Rs119.1 million from Rs138.6 million over the second quarter FY 2008-09 .The basic and diluted Earnings per Share for this three month period is Rs 9.49 per share.
Significant Developments during the Third Quarter Fiscal Year 2008-09 and noteworthy items. The Board of Directors approved the buy-back of the Company's fully paid-up equity shares of Rs 10/- each from the existing owners of shares from the open market through Stock Exchanges at a price not exceeding Rs. 50/- per share payable in cash for an aggregate amount not exceeding Rs. 5 crore.
Added over $6.9 million in customer contracts in the 3nd Fiscal Quarter with $5.5 million from existing customers. And added for the 9 month period ended December 31, 2008 $45.6 million in customer contracts and $17.6 million from existing customers.Substantial savings from integration and rationalization of global operations helped defray overall increases in costs in India – 11,686 associates across over 40 delivery centers in India, China, Mexico, U.S. & Canada.
Productivity improvements being achieved in FY 2009 by deployment of technology, improved capacity utilization and process improvements are slowing down the rate of employee growth as compared with previous years.
Diversified Client Base with low Customer Concentration and minimal exposure to financial services companies, however the changes in the USA consumer behavior has led to lower collections in the Accounts Receivable Management space (approx. 17% of total revenue) which has impacted our revenue growth rate by a few percentage points over the past few quarters- Top 100 clients represent over 73% of total revenues with the largest customer representing only 13% of total revenues Over 50% of leading FORTUNE 100® companies as reference-able clients in our core Service offerings.
Continue to rationalize our current customer based to drive recurring revenue and maximize earnings.Long Standing Relationships: Top 30 clients have been with the company for 5+ years.Company maintained strong liquidity position with DSO of 50.8 days, Debt to Equity Ratio of 1.33 and Net Bank Debt of $115.8 million at December 31, 2008.
Successfully continue to leverage company's Top Tier BPO Service Provider with established reputation for Reliable, High Quality and Secure services.
Ranked 15 on the International Association of Outsourcing Professionals' (IAOP) Global Outsourcing 100 list for 2008, published in the May 5, 2008 issue of FORTUNE Magazine. This is the third consecutive ranking for HOV Services within the top 25, improvement of 9 positions from last year's ranking.
