Mid-sized IT company Hexaware Technologies today posted almost flat consolidated net profit of Rs 111.4 crore for third quarter ended September 2016, and said its board has approved buyback of shares.
The net profit stood at Rs 111.6 crore in the same period previous year.
The income from operations rose over 10.5 per cent to about Rs 904 crore, according to a BSE filing. Seen on a sequential basis the revenue was up about 4 per cent.
The company's tax expenses jumped to nearly Rs 38.6 crore in just-ended quarter against about Rs 32 crore in the corresponding period previous year.
"We continue to build solid momentum and volume growth across multiple verticals and service lines," R Srikrishna, CEO and Executive Director, Hexaware Technologies said.
During the third quarter, Hexaware added six new clients with total contract value of USD 42 million.
In dollar terms, the company's net profit dipped 2.2 per cent year on year to USD 16.7 million in September quarter. The revenue at USD 135.2 million was up 8.1 per cent over the corresponding period previous year.
In the third quarter, Americas led the geographic growth with 5.6 per cent sequential and 10.4 per cent year on year growth.
The board of directors of the company have approved a buyback proposal for purchase of up to 5.69 million (representing 1.9 per cent of total equity capital) at a price of Rs 240 per share for an aggregate amount not exceeding Rs 136.7 crore. The proposal is subject to approval of the shareholders.
"Buyback is the most efficient way of returning the capital back to the shareholders," Rajesh Kanani, Chief Financial Officer of Hexaware Technologies said.
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