Hexaware Technologies gains on better-than-expected Q4 profit

Hexaware Technologies is trading higher by 4% to Rs 84.70 after IT consulting and software firm reported a better-than-expected consolidated net profit of Rs 66 crore against an average analyst estimates of Rs 61 crore for the fourth quarter ended December 31, 2012 (Q4). The company had profit of Rs 88 crore in previous year quarter and Rs 84 crore in preceding quarter.

Income from operations however, declined by 1.2% to Rs 502 crore on quarter-on-quarter (Q-o-Q) basis during the recently concluded quarter.

“In dollar terms Q4 2012 revenue was at $92.4 million; in-line with the revised quarterly revenue guidance of $92 million,” Hexaware Technologies said in a statement.

The company expects 1.7%-2.8% Q-o-Q growth in revenue for the first quarter of next fiscal.

“Revenue for Q12013 is likely to be in the region of $ 94.0 million - $ 95.0 million; a Q-o-Q sequential revenue growth of 1.7% - 2.8%,” it added.

“For Q12013, on a constant currency basis, the company expect operating margin to expand 150–200 basis points Q-o-Q sequentially” stated P. R. Chandrasekar, CEO & Vice Chairman, Hexaware Technologies.

Meanwhile, the board of directors of the company has recommended payment of final dividend @ Rs 1.20 per share (60%) on equity shares of Rs 2/- each.

 

The stock opened at Rs 80 and hit a high of Rs 88.95 on NSE. A combined 4.42 million shares have changed hands on the counter in early morning deals on NSE and BSE.