Hexaware Technologies Q4 PAT up 22.3% YoY

Revenue for the quarter increased 14.8% year-on-year to Rs 940.9 crore, grew 4% quarter-on-quarter

Mid-cap IT services firm Hexaware Technologies stock surged during intra-day trading to almost 4.5 per cent as its October-December quarter results beat estimates.

The company’s net profit at Rs 121.5 crore for the fourth quarter (company follows January-December financial year calendar) up 22.3 per cent on year-on-year basis, and was up nine per cent on a sequential basis.

Revenue for the quarter increased 14.8 per cent year-on-year to Rs 940.9 crore and grew four per cent quarter-on-quarter.

Hexaware’s US dollar revenue at $138.9 million was up 2.7 per cent sequentially. In constant currency terms revenues were up 3.4 per cent.

“We continue to deliver solid broad-based growth on the back of our Shrink IT, Grow Digital Strategy. We now exit 2016 with a run-rate that puts us in pole position for a double-digit growth in 2017. We also saw accelerated booking from new customers that will further aid our growth,” stated R Srikrishna, chief executive officer & executive director, Hexaware Technologies.

The company updated that the total contract value booking for the quarter was $55 million. 

The growth driver during the quarter was healthcare & insurance that grew 5.5 per cent quarter-on-quarter, and manufacturing, consumer & other grew at 4.1 per cent. In terms of geography, the United States (US) grew at 3.4 per cent sequentially.

Commenting on the current visa uncertainty the company stated in a statement that any changes that happen in future will be prospective and not retrospective. Further, it is likely to have an impact from late 2018 only, given that April 2017 is the cycle for new H1-B visa applications.

“In 2016, Hexaware saw a reduced dependence on H1-B and is committed to a continuous reduction of dependence on/usage of Visas. The Company has invested in multiple channels of fulfilment, including lateral hires, recruitment and training from college campuses in the US. In the past two years, Hexaware has opened delivery centers in Atlanta, Georgia, and Herdon, Virginia that has grown rapidly. The company has hired over 900 employees/full-time contractors in the US in 2016 and continue to be a strong contributor to the US economy,” said the company in a statement.