From Financial Stewardship to Strategic Leadership
CA Dhiraj Vashista
Chief Financial Officer (Executive-Director, Commercial)
HGS (India) Ltd.
From Financial Stewardship to Strategic Leadership
CA Dhiraj Vashista
Chief Financial Officer (Executive-Director, Commercial)
HGS (India) Ltd.
Two decades of leadership rarely remain static. They either redefine the individual or reshape the institution. In the case of Dhiraj Vashista, CFO of HGS (India) Limited, it has done both. His journey is marked by longevity and continuous transformation, where finance evolved from a back-end function into a central engine of enterprise value creation.
When he joined, HGSI operated at a smaller scale but with strong ambition. One of his earliest strategic milestones was securing Export Orientated Unit (EOU) status. This proved pivotal for optimising cost structures and unlocking efficiencies. It laid the foundation for disciplined growth, resulting in a tenfold increase in revenue over the years, driven by prudent capital allocation.
Dhiraj’s leadership stands out in complex situations. The cross-border transfer of a Geophones manufacturing facility required detailed planning and regulatory expertise. More recently, he played a key role in IPO readiness, improving valuation by 50% while strengthening governance and investor confidence.
He was honoured with the “Sher-e-Haryana” award in 2026, in recognition of exemplary contribution to the growth and prosperity of Haryana and Vikshit Haryana Roadmap 2047, reflecting the wider economic impact of his work. Beyond numbers, his journey highlights the evolving role of a CFO where shaping strategy, enabling growth, and building long-term resilience have become an integral part.
In an exclusive interaction with TradeFlock, Dhiraj shares insights from his leadership journey.
Where do businesses misalign financial strategy with growth, and how have you addressed it?
A common misalignment in many organisations occurs when commercial teams chase growth at any cost, while finance acts only as a cost gatekeeper. This creates silos where revenues rise but margins decline. Sustainable growth requires efficient capital rotation and data-driven forecasting.
In my role, I addressed this by integrating finance with business strategy. We implemented an advanced Excel-based MIS and SAP-driven dashboard, enabling real-time visibility into product costing and variance analysis. This shifted finance from a reactive auditor to a proactive commercial partner.
The results have been clear. Between FY23 and FY25, profit margins improved from 11% to 22%. This was achieved not through cost-cutting alone, but by aligning manufacturing hour rate (MHR) models with pricing strategies.
We also expanded into high-growth sectors like defence, mining, and infrastructure. These now contribute 40% of revenue. Despite entering capital-intensive areas, we remain debt-free, proving that financial discipline can drive sustainable growth.
How do you balance short-term performance with long-term investments?
Balancing short-term performance with long-term value creation is central to a CFO’s role. I follow a “dual-track” financial approach. The first track focuses on immediate operational efficiency, particularly non-material cost optimisation. Using SAP and data-driven insights, we reduced such costs by 6% between FY23 and FY25, even as revenues grew. These gains provide the fuel for future investments.
The second track focuses on long-term strategic bets. At HGS, this includes CAPEX in high-barrier sectors like defence and research. I view these not as expenses, but as investments funded through operational efficiencies. For instance, setting up a legal entity in The Netherlands was a strategic move to enhance global credibility and market access.
Maintaining a debt-free balance sheet is critical to this balance. It removes the burden of interest obligations and allows us to invest in R&D without short-term pressure. This ensures sustained growth and positions us strongly for the future.
What high-stakes decision challenged your judgement, and how did it reshape your view of risk and opportunity?
The period between 2023 and 2025 tested our financial strategy the most. With an industry slowdown underway, we had to choose between protecting liquidity or continuing with our IPO readiness and diversification plans. The margin for error was extremely narrow, and any misstep could have impacted long-term growth.
Instead of scaling back, I focused on improving capital efficiency. We unlocked nearly 25–30% of capital by refining internal controls and optimising the supply chain. This ensured we remained debt-free while still investing in key growth initiatives. Despite the challenging environment, we delivered close to 70% revenue growth during this phase.
This experience significantly reshaped my approach to risk. I no longer see it purely as a threat but as something that can be structured and managed. Today, my focus is on scenario-based planning, where every strategic decision is supported by strong liquidity buffers and clearly defined execution and pivot triggers.
What key areas are you focusing on to ensure stable growth and resilience over the next 3–5 years?
Looking toward 2030, my focus is built around three pillars: digital transformation, sectoral diversification, and ESG-compliant governance. First, we are strengthening AI-integrated SAP workflows to move from descriptive analytics to predictive modelling. This will help us anticipate shifts in OEM and export markets before they impact performance.
Second, we are expanding beyond traditional sectors into mining and defence, while evaluating strategic M&A opportunities. The aim is to localise advanced technologies in India and diversify revenue streams, reducing dependence on any single market.
Finally, as we move closer to being a listed entity, I am institutionalising a strong governance framework. This goes beyond compliance to include risk and crisis management systems. Together, these initiatives will ensure stable growth, resilience, and long-term global competitiveness for HGS.
