Hexaware Tech net rises 54% to Rs 65 cr, beats estimates

Software services firm Hexaware Technologies Ltd on Thursday reported a 54 percent rise in consolidated net profit for September quarter, beating estimates, and revised revenue guidance for the fourth quarter and year on back of continuing growth momentum.

Shares of the Mumbai-based firm, which were down by about 2.6 percent before earnings, pared the losses and turned positive after the results.

It posted a consolidated net profit of Rs 64.7 crore, compared with the net profit of Rs 42 crore in the year-ago period.

[caption id=“attachment_112512” align=“alignleft” width=“380” caption=“It posted a consolidated net profit of Rs 64.7 crore, compared with the net profit of Rs 42 crore in the year-ago period. Reuters”]  [/caption]

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Hexaware Technologies, which follows a calendar year, provided a fourth quarter revenue guidance of $82 million to $82.5 million (a quarter-on-quarter rise of 4 to 4.7 percent). For the third time this year, the IT firm also raised it annual revenue outlook.

“Since the growth momentum is continuing, we have revised the annual revenue guidance to 32 percent growth at $306 million. Although we have seen margin expansion for five successive quarters, Hexaware still has several levers left to improve margins over the medium term,” its Chairman Atul Nishar said in a statement.

In July, Hexaware had raised its annual revenue outlook to a minimum of $302 million.

For the July-September, Hexaware, which added 12 new clients, saw its EBITDA margins rise 340 basis points on quarter-on-quarter basis to 18.7 percent, despite onsite wage hikes.

The company is expecting a 20 percent EBITDA in the medium-term, Nishar told CNBC-TV 18. “It’s not unreasonable for us to achieve…,” he said.

According to a Reuters’ poll, mid-cap IT firms are likely to witness a muted growth in net profit and a squeeze in margins in July-Sept due to wage hikes, lateral hiring and the crisis in Europe.

Agencies