Hexaware Q4 net profit rises 14 per cent YoY, stock surges

Hexaware Technologies announced its year ending quarterly results on Wednesday. It is a mid-sized service company which provides IT, BPO and consulting services. It also informed exchanges that the Board of Directors of the company has declared interim dividend of Rs. 2.4 per share on equity shares of Rs 2 each. The stock of the company surged by 4.74 per cent and reached to Rs 234.25 on Thursday.

On financial front, the consolidated net revenue from operations of Hexaware reached to Rs 820 crores in Q3FY16 compared to Rs 818 crores in Q2FY16 an increase of 0.14 per cent quarter on quarter (QoQ). The EBITDA stood at Rs 130 crores this quarter compared to Rs 146 crores in Q2FY16 a decrease of 10.81 per cent QoQ. The EBITDA margin this quarter stood at 15.90 per cent compared to 17.85 per cent in Q2FY16. The employee expenses of company increased by 2.73 per cent QoQ to Rs 465 crores from Rs 452 crores in Q2FY16. The net profit stood at Rs 99 crores in Q3FY16 compared to Rs 112 crores in Q2FY16 a decrease of 11 per cent QoQ.

In USD terms, the consolidated operating revenue decreased by 0.8 per cent QoQ and reached to USD 124.1 million, in constant currency (CC) terms the decrease is of 0.5 per cent QoQ and reached to USD 124.5 million. The EBITDA stood at USD 19.9 million, a decrease of 17.4 per cent QoQ. The net profit stood USD 14.7 million, down 13.9 per cent QoQ.

The year ending consolidated net revenue from operations increased by 21 per cent and reached to Rs 3124 crores compared to Rs 2582 crores same period last year. In USD terms it is increased by 14.9 per cent year on year (YoY) and reached to USD 486 million. In CC terms net revenue increased by 17.6 per cent and reached to USD 497 million. The EBITDA increased by 16.6 per cent and reached to Rs 5568 crores.. In USD terms it is increased by 10.9 per cent and reached to USD 86.6 million. The net profit for the same six month period stood at Rs 393 crores compared to Rs 320 crores an increase of 22.81 per cent from same period last year. In USD terms it increased by 15.8 per cent and reached to USD 60.7 million.

During the quarter Asia Pacific (APAC) segment which consists of 5.6 per cent of revenue led the growth at 1.8 per cent. But America and Europe which are 81.3 and 13.1 per cent of total revenue decreased by 0.2 and 5.6 per cent QoQ. YoY American revenue increased by 11.9 per cent and Europe and APAC decreased by 5.5 and 2.6 per cent.

The company added 9 new clients across all its key focus areas. Investments in emerging technologies and deep client relationships continue to be the focus for the company.

R Srikrishna, CEO and Executive Director stated "Our primary goal for year 2015 was to establish growth momentum.We are pleased to have grown at an industry leading 14.9 percent organic growth for year 2015. A confluence of multiple factors like a soft calendar, furloughs, Chennai floods impacting revenues and recovery costs, bonus payment due to change in law, CSR expenses - all affected our performance this quarter."