Hexaware profit after tax declines 10.3%

Company gives flat revenue guidance for quarter ending June 30

IT and BPO services provider, Hexaware Technologies, reported 10.3% decline in its profit after tax for its financial year 2013's first quarter ended March 2013, at Rs 79.3 crore even though the company expanded its profit margin on the back of improved utilisation.

The revenues at Rs 508 crore increased by 15.8% at Rs 508 crore ($94 million) aided by a volume (billable man-hour during the quarter) growth of 1.9%. During the quarter, Hexaware profit margin by 240 basis points to 15.6%.

“The q-o-q improvement in volume, utilization and onsite-offshore ratio enabled robust improvement in gross margin and operating margin. We expect margins to expand further in the coming quarter,” said Atul Nishar, Chairman, Hexaware Technologies Limited.

On sequential quarter basis, the company’s profit after tax grew 19.8% whereas the revenues growth was 1.8%.

For the quarter ending June 30, 2013, Hexaware has given a revenue guidance of $94-$96 million, a flat to a growth of about two% indicating no significant improvement in the demand environment.

P R Chandrasekar, CEO and vice chairman of the company said the company is enhancing the depth and spread of its client facing and enhancing capabilities in emerging technologies such as cloud-based ERP. “With an increased focus on the account management of the top 50 clients, these initiatives would position us favorably to add value to our clients through multiple service lines,” he added.

The company’s share was trading at Rs 81.80, down by 1.21% on the BSE.