Hexaware Technologies slumps 10% on disappointing Q1 earnings

The stock dipped 10% to Rs 206 on NSE after the company posted 15% QoQ decline in profit at Rs 84 crore in March quarter.

Hexaware Technologies slumped nearly 10% to Rs 206 on the National Stock Exchange (NSE) in early morning trade after the company reported 15% decline in consolidated net profit at Rs 84 crore for the quarter ended March 31, 2016 (Q1FY16) on a sequential basis.

The information technology (IT) consulting & software company had reported a profit of Rs 99 crore in December 2015 quarter.

Operational income remained flat at Rs 820 crore over the preceding quarter. On constant currency terms, revenues declined 1.8% at $121.8 million on quarter on quarter (QoQ) basis.

Analysts on an average had expected profit of Rs 106 crore on revenues of Rs 855 crore.

Earnings before interest, tax, depreciation and amortization (EBITDA) margin declined by 60 basis points at 15.4% in Q1FY16 against 16% in previous quarter.

At 09:48 am, the stock was down 8% at Rs 209 on the NSE, trading close to its 52-week low of Rs 202 touched on August 24, 2015 in intra-day deal. The trading volumes on the counter jumped by an over five-fold with a combined 5.51 million shares changed hands on the NSE and BSE so far.