Hexaware slips 16% from record high, hits all-time low; nears issue price

In the past two weeks, Hexaware Technologies has underperformed the market as its share price declined by 13 per cent after reporting 0.2 per cent quarter-on-quarter (Q-o-Q) revenue growth

Hexaware Technologies share price hit a new low of ₹715 on the BSE on Friday as it fell 2 per cent in the intraday trade. IT shares choppy in trade on Friday, March 21, after global consultancy firm Accenture shared a cautious demand outlook for the information technology (IT) services sector.

 

The stock price of Hexaware Tech fell below its previous low of ₹720, which it hit on March 17, 2025. It is trading at its lowest level since listing on February 19, 2025. The stock has corrected 16 per cent from its record high level of ₹850 which it touched on February 27, 2025. It is quoting close to its issue price of ₹708 per share.

 

By 11:31 AM, however, Hexaware Technologies share had bounced back from its intraday low and was trading nearly 1 per cent higher at ₹736.30 on the BSE. In comparison, the BSE Sensex was up 0.70 per cent at 76,882.  ALSO READ | Stock Market LIVE: Sensex 550 pts higher at 76,900; Nifty at 23,350; Pharma, Auto, Health up

 

On Thursday, Accenture reported a decent year-on-year (Y-o-Y) revenue growth and raised its Q3 and FY25 revenue guidance at the lower band, driven by superior growth in Q2. However, it maintained the upper end of its full-year growth forecast at 7 per cent, reflecting a cautious stance on the macroeconomic environment. The tone of Accenture's outlook was neutral to cautious, with the margin guidance also seeing a minor compression of 10 bps at the upper band to 15.7 per cent for the fiscal year, ICICI Securities said in a note.

 

Meanwhile, in the past two weeks, Hexaware Tech has underperformed the market as its share price declined by 13 per cent after reporting 0.2 per cent quarter-on-quarter (Q-o-Q) revenue growth in constant currency (CC) terms in a seasonally soft December 2024 quarter.

 

The miss was attributed to higher than estimated Q3 base (this was Hexaware's first quarterly disclosure); and 70bps impact of furloughs. Growth was, however, strong on a Y-o-Y basis (up 18 .5 per cent).

 

Favourable compensation costs – H2CY23 was weak – and inorganic contribution (2ppt Y-o-Y) helped. Slower growth percolated down to margins, resulting in 50bps miss on Ebitda margins (ex-other income), analysts at JM Financial Institutional Securities said. 

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The management indicated some deterioration in the macro environment and cited instances of spending cuts. Hexaware's own outlook for CY25, however, remains resilient. The management's confidence (of minimum double digit growth) is undergirded by two large consolidation wins with two more in the pipeline. These should drive a stronger H2CY25 and insulate it from minor changes in macro, the brokerage firm said in its result update report.

 

“Management's CY25 outlook was cautiously optimistic. They flagged off marginal deterioration in macro over the past few weeks. But that did not deter them from indicating at least a double digit growth for CY25 and onwards. Importantly, their CY25 view is not contingent on macro or future deal wins, and hence credible, in our view," analysts said.