HOV Services Ltd's Q3FY25 Quarter Results
- 11 Feb 2025
Result Summary
- HOV Services Ltd reported a 10.7% quarter-on-quarter (QoQ) increase in its consolidated revenues for the quarter-ended Dec (Q3FY25). On a year-on-year (YoY) basis, it witnessed a growth of 52.2%.
- Its expenses for the quarter were up by 5.0% QoQ and 48.4% YoY.
- The net profit increased 65.0% QoQ and increased 109.5% YoY.
- The earnings per share (EPS) of HOV Services Ltd stood at 1.1 during Q3FY25.
Financial Statments for Q3FY25
| (₹ crores) | Q3FY25 | Q2FY25 | Q3FY24 | QoQ (%) | YoY (%) |
|---|---|---|---|---|---|
Total Income | 6.71 | 6.06 | 4.41 | 10.7% | 52.2% |
Total Expenses | 5.24 | 4.99 | 3.53 | 5.0% | 48.4% |
Profit Before Tax | 1.47 | 1.08 | 0.88 | 36.1% | 67.0% |
Tax | 0.15 | 0.28 | 0.24 | -46.4% | -37.5% |
Profit After Tax | 1.32 | 0.80 | 0.63 | 65.0% | 109.5% |
Earnings Per Share | 1.10 | 0.60 | 0.50 | 83.3% | 120.0% |
Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results
Company Overview
HOV Services Ltd is a company whose primary business operations are in the realm of providing outsourcing services, primarily in the finance, accounting, healthcare, and enterprise content management sectors. The company is known for offering various business process outsourcing (BPO) services that cater to the needs of diverse industries. As of the recent information available, HOV Services Ltd has not announced any significant new developments or strategic changes. The company continues to operate within its traditional business model, focusing on delivering value through efficient and cost-effective solutions.
Revenue
In the third quarter of the fiscal year 2025 (Q3FY25), HOV Services Ltd reported a total income of ₹6.71 crore, marking a quarter-over-quarter (QoQ) increase of 10.7% compared to ₹6.06 crore in Q2FY25. This also represents a substantial year-over-year (YoY) growth of 52.2% from Q3FY24, where total income was ₹4.41 crore. The increase in total income indicates a period of financial growth for the company when comparing sequential quarters as well as against the previous year’s figures. This revenue growth could be attributed to various factors, including but not limited to increased demand for the company's services or expansion in client base.
Profitability
HOV Services Ltd's profitability has shown significant improvement in Q3FY25. The Profit Before Tax (PBT) for the quarter was ₹1.47 crore, showing an increase of 36.1% QoQ from ₹1.08 crore in Q2FY25, and a YoY increase of 67.0% from ₹0.88 crore in Q3FY24. After accounting for taxes, the Profit After Tax (PAT) for Q3FY25 was ₹1.32 crore, which is a 65.0% increase from the previous quarter's ₹0.80 crore and a 109.5% increase compared to ₹0.63 crore in Q3FY24. This improvement in profitability is further reflected in the Earnings Per Share (EPS), which rose to ₹1.10 in Q3FY25 from ₹0.60 in the previous quarter (an increase of 83.3%) and from ₹0.50 a year earlier (a 120.0% increase).
Operating Metrics
During Q3FY25, HOV Services Ltd recorded total expenses of ₹5.24 crore. This is an increase of 5.0% QoQ from ₹4.99 crore in Q2FY25 and a 48.4% increase YoY from ₹3.53 crore in Q3FY24. Despite the rise in expenses, the company managed to achieve a higher profit margin due to its significant revenue growth. The tax expense in Q3FY25 was ₹0.15 crore, representing a decrease of 46.4% QoQ from ₹0.28 crore in Q2FY25 and a YoY decrease of 37.5% from ₹0.24 crore in Q3FY24. This reduction in tax expense could be due to various factors, potentially including changes in tax regulations or effective tax planning. Overall, the company's operating metrics indicate an effective management of costs relative to revenue growth during the analyzed period.
