Hexaware Technologies turns volatile after Q2 results

Hexaware Technologies rose 0.66% to Rs 106.15 at 15:27 IST on BSE after consolidated net profit surged 23% to Rs 97.90 crore on 5.7% growth in revenue to Rs 536 crore in Q2 June 2013 over Q1 March 2013.

The Q2 result was announced before market hours today, 19 July 2013.

Meanwhile, the S&P BSE Sensex was up 10.11 points or 0.05% at 20,138.52.

On BSE, 12.04 lakh shares were traded in the counter as against average daily volume of 2.76 lakh shares in the past one quarter.

The stock was volatile. The stock rose as much as 3.46% at the day's high of Rs 109.10 so far during the day. The stock lost as much as 4.55% at the day's low of Rs 100.65 so far during the day. The stock had hit a 52-week low of Rs 72.30 on 25 June 2013. The stock had hit a 52-week high of Rs 142 on 14 September 2012.

The stock had outperformed the market over the past one month till 18 July 2013, surging 30.59% compared with the Sensex's 4.71% rise. The scrip had also outperformed the market in the past one quarter, jumping 20.51% as against Sensex's 5.85% rise.

The mid-cap company has equity capital of Rs 59.73 crore. Face value per share is Rs 2.

Hexaware Technologies' consolidated earnings before interest, taxation, depreciation and amortization (EBITDA) margin for Q2 June 2013 expanded to 23.7%, up 440 basis points (bps) on QoQ basis.

Hexaware Technologies' cash & cash equivalents increased to Rs 587 crore as on 30 June 2013, from Rs 566 crore as on 31 March 2013.

The company added 14 new clients in Q2 June 2013.

Atul Nishar, Chairman, Hexaware Technologies said, "As guided last quarter, Hexaware profitability has materially improved across the board to healthy levels; gross margin at 39.4%, EBITDA at 23.7% and PAT at 18.2%. We believe going forward our margins will remain healthy".

P. R. Chandrasekar, CEO and Vice Chairman, Hexaware Technologies said, "Our enhanced attention to the 'Top 50' client account management has reflected in our current deal pipeline & continued investments for hunting new logos resulted in yet another strong showing with 14 new client additions. We remain confident of delivering robust Q-o-Q growth of 3.5% to 5.5% in the coming quarter".

Hexaware expects 3.5% to 5.5% growth in consolidated revenue at between $98.10 million to $100 million in Q3 September 2013 over Q2 June 2013.

Hexaware Technologies is a leading global provider of IT & BPO services and consulting. The company focuses on key domains such as banking, financial services, insurance, travel, transportation, logistics, life sciences and healthcare.

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