Hexaware lowers revenue outlook for Q4

Cites a $450,000 hit on account of Hurricane Sandy as the reason

IT, BPO and consulting services firm Hexaware Technologies today lowered its revenue outlook for the October-December quarter, citing changes in a contract and a $450,000 hit on account of Hurricane Sandy.

"Due to certain unforeseen changes to a project plan in a large engagement for a customer, Hexaware now expects the revenues for fourth quarter of 2012 to be $92 million.

The revised revenue guidance also includes impact of $450,000 on account of Hurricane Sandy on the Eastern Coast of the US," Hexaware said in a filing to the BSE.

While reporting earnings for quarter ending September 30, 2012 (third quarter), Hexaware had issued a revenue outlook of $94.7 -96.5 million for fourth quarter of 2012.

Hexaware expects to grow 18% year-on-year in the Calendar Year 2012. In FY2011, the company's revenue stood at $308.1 million, it said.    

The revised outlook is about 2.85% below the lower end of its earlier outlook and 4.66% below the higher end.

Reacting to this, the company's scrip was trading at Rs 98.60 at 1220 hours, down 7.37% from its previous close on the BSE.

"The relationship with the client remains solid. All other projects and initiatives with the client continue unchanged and on track," Hexaware Technologies CEO and Vice Chairman P R Chandrasekar said.

The company remains on course to deliver above industry revenue growth over the medium term, he added.    

Hexaware would have a material adverse impact on the profitability margin metrics this quarter on account of the revision in the revenue outlook and due to continued investments, Chandrasekar said.    

"Notwithstanding this development, Hexaware continues to strengthen its execution engine; enhancing its domain capabilities and technological competencies and increasing its field presence from business development perspective," he added.

Hexaware, which follows a January-December fiscal, would report its results for the quarter ending December 31, 2012 and full year 2012 in early February, 2013.