Hexaware Technologies Posts Stagnant Result In Q4CY13

Hexaware Technologies, an IT company having operations in consulting, software development and business process outsourcing (BPO), today (February 7, 2013) announced its fourth quarter financial year 2013 result (The company follows calendar year as its financial year).

For the quarter under consideration, the company did not show any growth on revenue front and reported muted revenue of Rs 620 crore over Rs 621 in Q3CY13. Except the banking & financial (BFSI) business segment all the other segments has shown a drop in the income. BFSI, on sequential basis showed a growth of about 2% to Rs 216.7 crore and others showed 8% growth to Rs 73.2 crore in the same quarter.

However, against the marginal drop in sales, the company's net profit grew by 4.6% on sequential basis to Rs 103.2 crore on account of decline in forex loss and also by the reduction of provisions made by the company for December quarter CY13.

On services front also, the IT company, has underperformed, except for the business intelligence and remote infrastructure management services which showed a subdued growth on quarter on quarterly basis.   

Its income from US has grown marginally by 0.6% to 66.1% of revenue (Rs 409 crore) while Asia Pacific stood neutral, whereas, Europe showed a fall in the revenue contribution.

Operating expenses has increased by 1.6% on quarterly basis and stood at Rs 480.6 crore primarily due to increase in its employee expenses (increase in number of headcount). However, the company showed a decline in its software and development expenses. EBITDA for the company fell by 5.7% at Rs 139.4 crore. EBITDA in fourth quarter shrunk by 130 basis points to 22.48%, while PAT margin gained by 75 basis points to 16.65% due the combined effect of good growth in other income (grew by 57% to Rs 106 crore) and reduction in forex losses.

Although the company posted a low-key performance in Q4CY13, it expects the demand to pick-up in the near future. Also the company expects the margins to improve going ahead, backed by the various investments in queue in the coming quarters. The company added 10 new clients in Q4CY13.