Hexaware dips 9% on revised revenue outlook

Hexaware Technologies stock plunged 9.3 per cent, as the company revised its fourth quarter revenue outlook downwards, citing changes to a project plan and an impact of about $450,000 on account of Hurricane Sandy in the US.

The company lowered its December quarter revenue outlook to $92 million, from the previously stated range of $94.7 million - $96.5 million, a growth of 18 per cent.

“The relationship with the client remains solid. All other projects and initiatives with the client continue unchanged and on track. The company remains on course to deliver above industry revenue growth over the medium term”, said P R Chandrasekar, chief executive officer and vice-chairman, Hexaware Technologies.

The company would also have a material adverse impact on the profitability margin metric this quarter on account of the revision in revenue outlook and due to continued investments made by Hexaware, the company said.

The stock opened at Rs 107 and hit a low of Rs 95.75 per share on the BSE, representing a drop of 10.5 per cent. The stock, though closed at Rs 96.5 per share, down 9.3 per cent from the previous close of Rs 106.45.