Hexaware Q2 PAT at Rs 76 crore, down 22% y-o-y

Higher expenses, lower other income hurt company''s bottomline

Hexaware Technologies, a leading global provider of IT, BPO and consulting services, reported a consolidated net profit of Rs 76.57 crore in the June quarter, down 22 percent from same period last year mainly because of lower other income and increased expenses.

Rise in company's revenue and gains from foreign exchange, however, provided some cushioning to the company's bottomline.

Expenses during this second quarter rose to Rs 519 crore, up 24 percent from the corresponding period last year, while other income declined to Rs 7 crore from a double digit figure a year ago.

Hexaware follows calendar year and hence the earnings reported are of second quarter.

Total expenses were up due to a sharp rise in software and development expenses.

During the previous quarter, the company added 13 new clients with eight customers in the US, three in Europe and two in Asia Pacific region, said the company in its release.

This helped Hexaware garner an income of Rs 610 crore, up 14 percent year-on-year while its profit from exchange rate difference stood at Rs 1 crore as against a loss of Rs 3.97 crore in the corresponding period last year.

Of the total clients added, one was added in the Healthcare & Insurance segment and two clients each were in the banking and financial services and in the travel and transportation vertical. Remaining four were added in the manufacturing and retail vertical, said Hexaware.

Despite all this, the Mumbai-based company saw its operating profits squeeze to Rs 90.91 crore from Rs 117.89 crore a year ago.

Sequentially, however, the company's net profit rose 9 percent, while revenues moved up 4 percent.

On standalone basis, Hexaware's revenue took a hit of 4 percent on year-on-year and a hit of 6 percent on quarter-on-quarter basis with income from operations standing at Rs 237 crore.

Its bottomline, however, was marginally up from last year to Rs 60 crore and remained flat sequentially.