Hexaware profit takes a 15% knock in Dec quarter, despite 7% revenue growth

Revenue from Americas fell about 200 basis points to 79.8% over the year

Pune-based IT company Hexaware reported a 14.8 per cent drop in profit after tax (PAT) during the December quarter to Rs 1.2 billion, against Rs 1.4 billion in the previous quarter and Rs 1.2 billion in the year-ago period. This was despite the company seeing its revenue growing by 6.8 per cent over a year earlier to Rs 100 billion.

“We had a spectacular growth of 15.6 per cent in 2017, in an otherwise challenging year for the industry. Going forward, investments in automation, cloud technologies and customer experience transformation continue to be the focus of the Company,” remarked Atul Nishar, Chairman, Hexaware Technologies Limited said in a statement.

EBIDTA dipped about 7.8 per cent quarter on quarter to Rs 1.6 billion. The company reported five new clients with TCV booking of $72 million, in line with the “Shrink IT Grow Digital” strategy. The company added eight new clients over the quarter and 31 during the year.

Asia-Pacific was the fastest growing geography with 56.8 per cent growth in 2017. In Q4 2017, APAC showed 8.1 per cent Q-o-Q and 78.9 per cent Y-o-Y growth. Banking and Financial Services (BFS) showed a 23.2 per cent growth for the year 2017, said the company.

Revenue from Americas fell about 200 basis points to 79.8 per cent over the year.

In Q4 2017, BFS led the vertical growth with 3.9 per cent Q-o-Q and 18.6 per cent YoY growth. IMS and Business Process Services (BPS) showed growth of 55.7 per cent and 24.3 per cent respectively for the year 2017. Infrastructure Management Services (IMS) delivered sturdy growth of 5.7 per cent Q-o-Q and 45.1 per cent Y-o-Y.

The company has also steadily controlled attrition rate to bring it down to 13.1 per cent compared to 16.1 per cent a year ago. Headcount stood at 13,705 at the end of Q4 2017; up 1,550 Y-o-Y, up 217 Q-o-Q

“We are pleased to have delivered industry-leading growth across all parameters in FY17; and are looking forward to a continued robust performance in 2018,” stated R Srikrishna, CEO & Executive Director, Hexaware Technologies Limited.