Hexaware net profit rises 2% to Rs 123.4 cr in Dec quarter

Mid-sized IT services firm Hexaware Technologies Wednesday reported a 2 per cent rise in consolidated net profit at Rs 123.4 crore for the December 2018 quarter.

The company had posted a net profit of Rs 120.9 crore in the year-ago period, Hexaware said in a statement.

Its revenue from operations rose 24.6 per cent to Rs 1,252.4 crore from Rs 1,004.8 crore.

Hexaware, which follows the January-December fiscal, said it expects its organic revenue growth to be 12-14 per cent in 2019 with majority of this growth happening in later part of the year.

"On the back of strong bookings in 2018 and ongoing strength in client mining, we expect to deliver industry leading organic growth in 2019," Hexaware Technologies Chief Executive Officer and Executive Director R Srikrishna said.

For the full year, the company's net profit was up 16.8 per cent to Rs 583.5 crore, while revenue from operations grew 17.9 per cent to Rs 4,647.8 crore as compared to 2017.

In dollar terms, Hexaware saw its net profit dropping 8.6 per cent to USD 17.2 million, while revenue was higher by 12.8 per cent to USD 176.1 million in the December 2018 quarter from the year-ago period.

For 2018, the net profit was up 10.2 per cent to USD 84.9 million, while revenue from operations grew 11.6 per cent to USD 677.7 million from the previous year.

"Hexaware has seen sustained organic revenue growth with CAGR (compound annual growth rate) of 12.5 per cent over the last five years. This is acknowledgement of our excellent client relationships and strong execution capabilities," Hexaware Technologies Chairman Atul Nishar said.

The company added five new clients in the December 2018 quarter with total contract value of USD 116 million. For the full-year, it signed on 15 new clients with TCV of USD 210 million, the statement said.

Hexaware has declared an interim dividend of Rs 2.50 per share for the said quarter. "Including the fourth interim dividend, the dividends declared including tax for the four quarters of 2018 total to Rs 304.5 crore," the statement said.

Its total headcount stood at 16,205 people with the addition of 155 during the December 2018 quarter. The attrition rate was at 17 per cent.

Its cash and cash equivalents stood at USD 119.5 million or Rs 834 crore at the end of the reported quarter.

Europe led geographic growth with a 21.5 per cent revenue growth year-on-year, while Americas grew 11.7 per cent and Asia-Pacific by 11.2 per cent. Americas accounted for 76.9 per cent of the revenues in the December quarter, while Europe and Asia Pacific contributed 13 per cent and 10.1 per cent, respectively.

In the quarter, the healthcare and insurance segment grew 28.7 per cent y-o-y, while manufacturing and consumer vertical grew 23.8 per cent, followed by professional services (19.4 per cent) and banking and financial services (6.9 per cent). Travel and transportation de-grew 7.3 per cent.